Chris Corporation acquired 75% of Martin Company's ownership on January 1, 20X8, for $96,000. At that...
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Chris Corporation acquired 75% of Martin Company's ownership on January 1, 20X8, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Martin's net assets at acquisition was $100,000. The book values and fair values of Martin's assets and liabilities were equal, except for Martin's buildings and equipment, which were worth $20,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and equipment are appreciated on a 10-year basis. The Management of Chris concluded at December 31, 20X8 that goodwill from its purchase of Martin shares had been impaired and the correct carrying value was $3,500. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. Trial balance data for Chris and Martin on December 31, 20X8 is below: Chris Corporation Martin Company Item Debit Credit Debit Credit Cash $47,500 $21,000 Accounts Receivable 70,000 12,000 Inventory 90,000 25,000 Land 30,000 15,000 Buildings & Equipment 350,000 150,000 Investment in Martin Company 96,375 Cost of Goods Sold 125,000 110,000 Wage Expense 42,000 27,000 Depreciation Expense 25,000 10,000 Interest Expense 12,000 4,000 Other Expense 13,500 5,000 Dividends Declared 30,000 16,000 Accumulated Depreciation $145,000 $40,000 Accounts Payable 45,000 16,000 Wages Payable 17,000 9,000 Notes Payable 150,000 50,000 Common Stock 200,000 60,000 Retained Earnings 102,000 40,000 Sales 260,000 180,000 Income from Martin Company 12,375 $931,375 $931,375 $395,000 $395,000 What is Chris's ending book value in Martin as of 12/31/X8? Hint: consider creating a book value analysis table for the year. (Enter your answer in the following format for faster grading: $x,xxx). Chris Corporation acquired 75% of Martin Company's ownership on January 1, 20X8, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Martin's net assets at acquisition was $100,000. The book values and fair values of Martin's assets and liabilities were equal, except for Martin's buildings and equipment, which were worth $20,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and equipment are appreciated on a 10-year basis. The Management of Chris concluded at December 31, 20X8 that goodwill from its purchase of Martin shares had been impaired and the correct carrying value was $3,500. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. Trial balance data for Chris and Martin on December 31, 20X8 is below: Chris Corporation Martin Company Item Debit Credit Debit Credit Cash $47,500 $21,000 Accounts Receivable 70,000 12,000 Inventory 90,000 25,000 Land 30,000 15,000 Buildings & Equipment 350,000 150,000 Investment in Martin Company 96,375 Cost of Goods Sold 125,000 110,000 Wage Expense 42,000 27,000 Depreciation Expense 25,000 10,000 Interest Expense 12,000 4,000 Other Expense 13,500 5,000 Dividends Declared 30,000 16,000 Accumulated Depreciation $145,000 $40,000 Accounts Payable 45,000 16,000 Wages Payable 17,000 9,000 Notes Payable 150,000 50,000 Common Stock 200,000 60,000 Retained Earnings 102,000 40,000 Sales 260,000 180,000 Income from Martin Company 12,375 $931,375 $931,375 $395,000 $395,000 What is Chris's ending book value in Martin as of 12/31/X8? Hint: consider creating a book value analysis table for the year. (Enter your answer in the following format for faster grading: $x,xxx).
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Related Book For
Advanced Financial Accounting
ISBN: 9781265042615
13th International Edition
Authors: Theodore E. Christensen, David M. Cottrell, Cassy Budd
Posted Date:
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