Panther Company acquires an 80% interest in Sargo Company for $272,000 on January 1, 2011, when Sargo

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Panther Company acquires an 80% interest in Sargo Company for $272,000 on January 1, 2011, when Sargo Company has the following balance sheet:

Panther Company acquires an 80% interest in Sargo Company for

The excess of the price paid over book value is attributable to the fixed assets, which have a fair value of $260,000, and to goodwill. The fixed assets have a 10-year remaining life. Panther uses the sophisticated equity method to record the investment in Sargo Company.
The following trial balances of the two companies are prepared on December 31, 2011:

Panther Company acquires an 80% interest in Sargo Company for

1. If you did not solve Exercise 3, prepare a determination and distribution of excess schedule for the investment (a value analysis is not needed).
2. Prepare all the eliminations and adjustments that would be made on the 2011 consolidated worksheet.
3. If you did not solve Exercise 3, prepare the 2011 consolidated income statement and its related income distribution schedule.
4. If you did not solve Exercise 3, prepare the 2011 statement of retained earnings.
5. If you did not solve Exercise 3, prepare the 2011 consolidated balance sheet.

Consolidated Income Statement
When talking about the group financial statements the consolidated financial statements include Consolidated Income Statement that a parent must prepare among other sets of consolidated financial statements. Consolidated Income statement that is...
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Advanced Accounting

ISBN: 978-0538480284

11th edition

Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng

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