Blackfish Company purchased 100% of Tautog Company on January 1, 2021 for $1,100,000 in cash. On the
Fantastic news! We've Found the answer you've been seeking!
Question:
Blackfish Company purchased 100% of Tautog Company on January 1, 2021 for $1,100,000 in cash. On the day of the purchase, Tautog had the following net assets:
Book | Fair Value | Life | ||||
Cash, receivables | $100,000 | $100,000 | ||||
Equipment | 375,000 | 450,000 | 3 years | |||
Land | 200,000 | 150,000 | ||||
Building (net) | 500,000 | 580,000 | 5 years | |||
Payables | $300,000 | 200,000 | 1 year | |||
Blackfiash Net Assets | $875,000 | $1,080,000 |
Blackfish uses the equity method, as required.
a. Prepare a schedule showing how to allocate the difference in fair value given up by Blackfish and what is received from Tautog.
b. Determine the amortization of excess for 2021.
Related Book For
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date: