5. Larissa Company acquired Tara Inc. on January 1, 2016. On January 1, 2016 all of...

  

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5. Larissa Company acquired Tara Inc. on January 1, 2016. On January 1, 2016 all of Tara's assets and liabilities had fair values equal to book value except for the following: land was undervalued by $30,000 buildings were overvalued by $45,000 (20-year remaining useful life) equipment was undervalued by $90,000 (5-year remaining useful life) In addition, Tara had internally developed a customer list with an appraised value of $150,000 and a 10-year remaining useful life. Larissa originally acquired Tara at the fair value of its net identifiable assets that equaled $1,050,000. The following are selected accounts for Larissa Company and Tara, Inc. as of December 31, 2020 (Larissa Investment in Tara and Equity in Tara's Income accounts have been omitted). Credit balances are indicated by parentheses: Larissa Tara $ (900,000) 420,000 180,000 (1,350,000) 195,000 $ (375,000) 150,000 75,000 (900,000) 60,000 1,035,000 Revenues Cost of Goods Sold Depreciation Expense Retained EarningS, Beginning Dividends Paid Current Assets 300,000 Land 450,000 750,000 300,000 (600,000) (450,000) (75,000) Buildings (net) Equipment (net) Liabilities 135,000 210,000 375,000 (465,000) (60,000) (240,000) Common Stock Additional Paid-in Capital a.) Determine the proper December 31, 2020 consolidated totals for each of the following accounts (show your work/computations: Account Consolidated Balance SHOW YOUR WORK Dec. 31, 2020 Revenues Cost of Goods Sold Depreciation Expense Amortization Expense Buildings, net Equipment, net Customer List Common Stock Additional Paid-in Capital Assume Larissa uses the equity method and prepare consolidation entries for 2020. Entry Account Title Debit Credit 5. Larissa Company acquired Tara Inc. on January 1, 2016. On January 1, 2016 all of Tara's assets and liabilities had fair values equal to book value except for the following: land was undervalued by $30,000 buildings were overvalued by $45,000 (20-year remaining useful life) equipment was undervalued by $90,000 (5-year remaining useful life) In addition, Tara had internally developed a customer list with an appraised value of $150,000 and a 10-year remaining useful life. Larissa originally acquired Tara at the fair value of its net identifiable assets that equaled $1,050,000. The following are selected accounts for Larissa Company and Tara, Inc. as of December 31, 2020 (Larissa Investment in Tara and Equity in Tara's Income accounts have been omitted). Credit balances are indicated by parentheses: Larissa Tara $ (900,000) 420,000 180,000 (1,350,000) 195,000 $ (375,000) 150,000 75,000 (900,000) 60,000 1,035,000 Revenues Cost of Goods Sold Depreciation Expense Retained EarningS, Beginning Dividends Paid Current Assets 300,000 Land 450,000 750,000 300,000 (600,000) (450,000) (75,000) Buildings (net) Equipment (net) Liabilities 135,000 210,000 375,000 (465,000) (60,000) (240,000) Common Stock Additional Paid-in Capital a.) Determine the proper December 31, 2020 consolidated totals for each of the following accounts (show your work/computations: Account Consolidated Balance SHOW YOUR WORK Dec. 31, 2020 Revenues Cost of Goods Sold Depreciation Expense Amortization Expense Buildings, net Equipment, net Customer List Common Stock Additional Paid-in Capital Assume Larissa uses the equity method and prepare consolidation entries for 2020. Entry Account Title Debit Credit

Answer rating: 100% (QA)

a Consolidated totals for each of the following accounts as on Dec 31 2020 Account Consolidated bala... View the full answer