Consolidation.xlsx - Excel 28 Home Insert File Draw Page Layout Formulas Data Review View Help EXPREP RX our LUI COM Times New Roman 11 AA Custom Paste 2 Wrap Text Merge & Center BTU $ - % Alignment 892 fx 12/31/2020 Information Purple, Inc. and Silver, Ine, formed a business combination on January 1, 2016 when Purple acquired a 11 percentage of the outstanding shares of Silver. The details of the acquisition are given below - 85% Percentage acquired by Purple Acquisition Value $ 1.769,074.00 Silver's book value on date of acquisition $ 690,000.00 Note: The acquisition price was considered proportionate to Silver's total fair value. 18 Any excess acquisition value should be allocated to the following identifiable assets: Trademarks are undervalued by $ 58,000.00 Remaining useful life of trademarks 12 yrs. An unrecorded patent is valued at $ 5.000.00 Remaining life of patent 20 yrs 23 Any remaining excess acquisition-date fair value was assigned to goodwill. Since the date of Requisition, Purple has applied the equity method to its Investment in Silver account for 26 internal record-keeping purposes; no goodwill impairment has occurred. 29 Over the years, intercompany inventory sales between the two companies have been made and are 30 summarized below: Cost to Transfer Price Ending Balance Year Silver to Purple for transfer price) 2016 $110,000 $154.000 $40,000 90.000 117.000 30.000 2017 Data Type here to search Consolidationxlsx - Excel e Search Draw Page Layout Formulas Data Review View Help EXPREP Custom 28 File Home Insert X Cut Paste Copy Format Painter Clipboard 892 - X 4 A B O summarized below: Times New Roman - 11 BIU H O AA EEE A 2 Wrap Text Merge & Center - $ - % Font Alignment f 7 C 12/31/2020 D E Year 2016 2017 2018 Cost to Silver $110.000 90,000 100,000 102.000 82,000 Transfer Price to Purple $154.000 117.000 150.000 156,000 115.000 Ending Balance (ar transfer price) $40,000 30.000 50,000 60,700 23.680 2019 2020 A2 40 On January 1, 2018, Purple sold land to Silver. Information related to this sale is: Original cost to Purple $ 170,000.00 Transfer Price $ 275.000.00 43 44 On January 2, 2019, Silver sold a building to Purple. Details related to this transactions are: Original cost to Silver $ 175,000.00 Accumulated depreciation at time of transfer $ 101,300.00 Transfer price $ 183,700.00 Remaining useful life 5 yrs. 50 On January 2, 2020. Purple sold equipment to Silver. Details related to this transactions are: Original cost to Purple $ 180,000.00 The equipment was being depreciated over 10 years using the SL method. Transfer price $ 160,000.00 Remaining useful life 3 yrs. Data Type here to search Consolidationxlsx - Excel e Search Draw Page Layout Formulas Data Review View Help EXPREP Custom 28 File Home Insert 1 X Cut Poste Copy - Format Painter Clipboard B92 1 x Times New Roman 11 BIU B O AA == A 23 Wrap Text Merge & Center - $ -% ! Alig V f 12/31/2020 D E 57 The financial statements for Silver as of December 31, 2020, and the year then ended follow: Sales Cost of goods sold Operating and interest expenses Income of Silver Net Income Silver, Inc. $ (925,000.00) 514,000.00 165,000.00 5 (246,000.00) Retained earnings, 1/1 Net income (above) Dividends declared Retained earnings, 12/31 $ (580,000.00) (246,000.00) 6,000.00 5 (820,000.00) Cash and receivables Inventory Buildings (net) Equipment (net) Other assets Total assets 160,000.00 305,000.00 450,000.00 520,000.00 105,000.00 $ 1,540,000.00 Liabilities Common Stock Retained earnings, 12/31 Total liabilities & equities (570,000.00) (150,000.00) (820.000.00) S(1.510,000.00) Data Type here to search ile Review View Help EXPREP Custom U In Copy Copy 29 Wrap Text Merge & Center aste 3 $ % Home Insert Draw Page Layout Formulas Data X Cut Times New Roman - 11 AA 33 Format Painter BI O A Clipboard 6 . X for 12/31/2020 B CDL Total liabilities & equities Font Alignment Numb 92 " S(1.540,000.00) 3 Required: 4 1. Prepare a schedule for the acquisition-date fair value allocations and amortization. 2. Determine the amount recorded in the "Investment in Silver account at (a) December 31, 36 2019 and (b) December 31, 2020 3. Reconcile the "Investment in Silver account to the subsidiary's equity accounts at December 31, 2019. 4. Calculate the "Equity in Silver's Income to be reported on Purple' books at December 31, 2020 91 5. Calculate the Non-controlling Interest's share of Silver's income for the year ended 31-Dec-20) 6. Prepare the consolidating journal entries to be shown on the consolidation worksheet 94 at December 31, 2020. 7. Identify the four components and the respective dollar amounts of the Non-controlling Interest in Silver at December 31, 2020. 92 Data | Ready Type here to search Consolidation.xlsx - Excel 28 Home Insert File Draw Page Layout Formulas Data Review View Help EXPREP RX our LUI COM Times New Roman 11 AA Custom Paste 2 Wrap Text Merge & Center BTU $ - % Alignment 892 fx 12/31/2020 Information Purple, Inc. and Silver, Ine, formed a business combination on January 1, 2016 when Purple acquired a 11 percentage of the outstanding shares of Silver. The details of the acquisition are given below - 85% Percentage acquired by Purple Acquisition Value $ 1.769,074.00 Silver's book value on date of acquisition $ 690,000.00 Note: The acquisition price was considered proportionate to Silver's total fair value. 18 Any excess acquisition value should be allocated to the following identifiable assets: Trademarks are undervalued by $ 58,000.00 Remaining useful life of trademarks 12 yrs. An unrecorded patent is valued at $ 5.000.00 Remaining life of patent 20 yrs 23 Any remaining excess acquisition-date fair value was assigned to goodwill. Since the date of Requisition, Purple has applied the equity method to its Investment in Silver account for 26 internal record-keeping purposes; no goodwill impairment has occurred. 29 Over the years, intercompany inventory sales between the two companies have been made and are 30 summarized below: Cost to Transfer Price Ending Balance Year Silver to Purple for transfer price) 2016 $110,000 $154.000 $40,000 90.000 117.000 30.000 2017 Data Type here to search Consolidationxlsx - Excel e Search Draw Page Layout Formulas Data Review View Help EXPREP Custom 28 File Home Insert X Cut Paste Copy Format Painter Clipboard 892 - X 4 A B O summarized below: Times New Roman - 11 BIU H O AA EEE A 2 Wrap Text Merge & Center - $ - % Font Alignment f 7 C 12/31/2020 D E Year 2016 2017 2018 Cost to Silver $110.000 90,000 100,000 102.000 82,000 Transfer Price to Purple $154.000 117.000 150.000 156,000 115.000 Ending Balance (ar transfer price) $40,000 30.000 50,000 60,700 23.680 2019 2020 A2 40 On January 1, 2018, Purple sold land to Silver. Information related to this sale is: Original cost to Purple $ 170,000.00 Transfer Price $ 275.000.00 43 44 On January 2, 2019, Silver sold a building to Purple. Details related to this transactions are: Original cost to Silver $ 175,000.00 Accumulated depreciation at time of transfer $ 101,300.00 Transfer price $ 183,700.00 Remaining useful life 5 yrs. 50 On January 2, 2020. Purple sold equipment to Silver. Details related to this transactions are: Original cost to Purple $ 180,000.00 The equipment was being depreciated over 10 years using the SL method. Transfer price $ 160,000.00 Remaining useful life 3 yrs. Data Type here to search Consolidationxlsx - Excel e Search Draw Page Layout Formulas Data Review View Help EXPREP Custom 28 File Home Insert 1 X Cut Poste Copy - Format Painter Clipboard B92 1 x Times New Roman 11 BIU B O AA == A 23 Wrap Text Merge & Center - $ -% ! Alig V f 12/31/2020 D E 57 The financial statements for Silver as of December 31, 2020, and the year then ended follow: Sales Cost of goods sold Operating and interest expenses Income of Silver Net Income Silver, Inc. $ (925,000.00) 514,000.00 165,000.00 5 (246,000.00) Retained earnings, 1/1 Net income (above) Dividends declared Retained earnings, 12/31 $ (580,000.00) (246,000.00) 6,000.00 5 (820,000.00) Cash and receivables Inventory Buildings (net) Equipment (net) Other assets Total assets 160,000.00 305,000.00 450,000.00 520,000.00 105,000.00 $ 1,540,000.00 Liabilities Common Stock Retained earnings, 12/31 Total liabilities & equities (570,000.00) (150,000.00) (820.000.00) S(1.510,000.00) Data Type here to search ile Review View Help EXPREP Custom U In Copy Copy 29 Wrap Text Merge & Center aste 3 $ % Home Insert Draw Page Layout Formulas Data X Cut Times New Roman - 11 AA 33 Format Painter BI O A Clipboard 6 . X for 12/31/2020 B CDL Total liabilities & equities Font Alignment Numb 92 " S(1.540,000.00) 3 Required: 4 1. Prepare a schedule for the acquisition-date fair value allocations and amortization. 2. Determine the amount recorded in the "Investment in Silver account at (a) December 31, 36 2019 and (b) December 31, 2020 3. Reconcile the "Investment in Silver account to the subsidiary's equity accounts at December 31, 2019. 4. Calculate the "Equity in Silver's Income to be reported on Purple' books at December 31, 2020 91 5. Calculate the Non-controlling Interest's share of Silver's income for the year ended 31-Dec-20) 6. Prepare the consolidating journal entries to be shown on the consolidation worksheet 94 at December 31, 2020. 7. Identify the four components and the respective dollar amounts of the Non-controlling Interest in Silver at December 31, 2020. 92 Data | Ready Type here to search