On January 1, 2015, Guif Corp. acquired 36% of Oppong Corporation's 200,000 outstanding shares for $15...

 

 

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On January 1, 2015, Guif Corp. acquired 36% of Oppong Corporation's 200,000 outstanding shares for $15 per share. Oppong Corporation's balance sheet on the date of the acquisition contains the following: Carrying amount $375,000 Fair value Assets not subject to depreciation Assets subject to depreciation (2 year remaining life on balance sheet date) Linbilities $375,000 1,249,000 206,000 1,251,000 206,000 During 2015, Oppong Corporation reported the following information on its income statement. Net income (loss) for 2015 Cash dividends paid on December 31, 2015 (8553.000) 79,000 Gulf Corp. follows ASPE a) Calculate the assumed goodwill. Please make sure your final answer(a) are accurate to the nearest whole number. Goodwill-S b) Calculate the annual depreciation of excess payments for capital assets. Please make sure your final answer(s) are accurate to the nearest whole number. Annual depreciation $ c) Prepare the joumal entries for Gulf Corp. for 2015 assuming that Gulf Corp. can exercise significant influence over Oppong Corporation's operations. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places. General Journal Account/Explanation Page G9 PR Debit Credit Date + On January 1, 2015, Guif Corp. acquired 36% of Oppong Corporation's 200,000 outstanding shares for $15 per share. Oppong Corporation's balance sheet on the date of the acquisition contains the following: Carrying amount $375,000 Fair value Assets not subject to depreciation Assets subject to depreciation (2 year remaining life on balance sheet date) Linbilities $375,000 1,249,000 206,000 1,251,000 206,000 During 2015, Oppong Corporation reported the following information on its income statement. Net income (loss) for 2015 Cash dividends paid on December 31, 2015 (8553.000) 79,000 Gulf Corp. follows ASPE a) Calculate the assumed goodwill. Please make sure your final answer(a) are accurate to the nearest whole number. Goodwill-S b) Calculate the annual depreciation of excess payments for capital assets. Please make sure your final answer(s) are accurate to the nearest whole number. Annual depreciation $ c) Prepare the joumal entries for Gulf Corp. for 2015 assuming that Gulf Corp. can exercise significant influence over Oppong Corporation's operations. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places. General Journal Account/Explanation Page G9 PR Debit Credit Date +

Answer rating: 100% (QA)

a Amount Purchase Consideration 1080000 Add NonControlling interest 9... View the full answer