Mill Corporation acquired 100 percent ownership of Roller Company on January 1, 20X8, for $128,000. At that

Question:

Mill Corporation acquired 100 percent ownership of Roller Company on January 1, 20X8, for $128,000. At that date, the fair value of Roller€™s buildings and equipment was $20,000 more than the book value. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Mill€™s management concluded at December 31, 20X8, that goodwill involved in its acquisition of Roller shares had been impaired and the correct carrying value was $2,500. No additional impairment occurred in 20X9. Trial balance data for Mill and Roller on December 31, 20X9, are as follows:

Mill Corporation acquired 100 percent ownership of Roller Company on


Required
a. Give all elimination entries needed to prepare a three-part consolidation worksheet as of December 31, 20X9.
b. Prepare a three-part consolidation worksheet for 20X9 in good form.
c. Prepare a consolidated balance sheet, income statement, and retained earnings statement for20X9.

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Advanced Financial Accounting

ISBN: 978-0078025624

10th edition

Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker

Question Posted: