B D E F G H K M N O P Q R 1 Mid-year acquisition - On 4/1/21, Big acquired 80% of Little's voting stock for $200,000. The fair value of the NC Interest on that date was $50,000. All of Little's assets and liabilities had fair values equal to book value, so any differential is ascribed to goodwill. 2 What is Liftle's book value (aka "net assets") at acquisition? How much goodwill is present? What are the post acquistion earnings" of Little? What are the "post acqusition dividends" of Little? What is the value in cell F22? What is the value in cell F23? What is the value in cell D277 What is the value in cell F28? What is the value in cell D43? What is the value in cell E437 0 0 Little had the following trial balance on that date: 7 & Cash & Receivables & 40,000 9 PPE 320,000 10 Liabilities 130000 11 Common Stock 50000 12 Retained earnings 160000 13 Sales 240000 14 Cost of goods sold 150000 15 Other expenses 60000 16 Dividends declared 10000 17 18 By the end of the year, Little reported total annual earnings of $100,000 and paid total annual dividends of $25,000 19 The end of year trial balances, arranged in worksheet format, are 20 21 Big Little dr cr Consolidated 22 Sales 450000 450000 23 Less: COGS 350000 260000 Less: other expenses 50000 90000 25 Investment income 56000 26 Net income 106000 100000 27 Less: Income to NC Interest 28 Income to controlling interest 29 30 Beginning R/E 230000 160000 31 Add: Income 106000 100000 32 Less: Dividends 30000 25000 33 Ending R/E 306000 235000 34 35 Cash and receivables 50000 40000 36 Investment in Little 244000 0 37 PPE 250000 300000 38 Goodwill 39 40 Liabilities 138000 55000 41 CS 100000 50000 42 R/E 306000 235000 43 NC Interest 44 544000 340000 45 544000 340000 B D E F G H K M N O P Q R 1 Mid-year acquisition - On 4/1/21, Big acquired 80% of Little's voting stock for $200,000. The fair value of the NC Interest on that date was $50,000. All of Little's assets and liabilities had fair values equal to book value, so any differential is ascribed to goodwill. 2 What is Liftle's book value (aka "net assets") at acquisition? How much goodwill is present? What are the post acquistion earnings" of Little? What are the "post acqusition dividends" of Little? What is the value in cell F22? What is the value in cell F23? What is the value in cell D277 What is the value in cell F28? What is the value in cell D43? What is the value in cell E437 0 0 Little had the following trial balance on that date: 7 & Cash & Receivables & 40,000 9 PPE 320,000 10 Liabilities 130000 11 Common Stock 50000 12 Retained earnings 160000 13 Sales 240000 14 Cost of goods sold 150000 15 Other expenses 60000 16 Dividends declared 10000 17 18 By the end of the year, Little reported total annual earnings of $100,000 and paid total annual dividends of $25,000 19 The end of year trial balances, arranged in worksheet format, are 20 21 Big Little dr cr Consolidated 22 Sales 450000 450000 23 Less: COGS 350000 260000 Less: other expenses 50000 90000 25 Investment income 56000 26 Net income 106000 100000 27 Less: Income to NC Interest 28 Income to controlling interest 29 30 Beginning R/E 230000 160000 31 Add: Income 106000 100000 32 Less: Dividends 30000 25000 33 Ending R/E 306000 235000 34 35 Cash and receivables 50000 40000 36 Investment in Little 244000 0 37 PPE 250000 300000 38 Goodwill 39 40 Liabilities 138000 55000 41 CS 100000 50000 42 R/E 306000 235000 43 NC Interest 44 544000 340000 45 544000 340000