Following are financial statements for Moore Company and Kirby Company for 2 0 2 5 : Moore
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Question:
Following are financial statements for Moore Company and Kirby Company for :
Moore Kirby
Sales
Cost of Goods Sold
Operating and Interest expense
Equity in Kirby's earnings
Net Income
Retained earnings
Net Income
Dividend paid
Retained earnings
Cash and receivables
Inventory
Investment in Kirby
Equipment net
Buildings
Accumulated depreciation Buildings
Other Assets
Total Assets
Liabilities
Common Stock
Retained earnings,
Total Liabilities and Equity
Moore purchased of Kirby on January for $ in cash. On that date, the
noncontrolling interest was assessed to have a $ fair value. Also, at the acquisition
date, Kirby held equipment year remaining life undervalued on the financial records by
$ and interestbearing liabilities year remaining life overvalued by $ The rest
of the excess fair value over book value was assigned to previously unrecognized brand names
and amortized over a year life.
During Kirby earned Net Income of $ and paid no dividends.
Each year Kirby sells Moore inventory at a gross profit rate. Intraentity sales were
$ in and $ in On January of the transfers were
still on hand and, on December of the transfers remained.
Moore sold Kirby a building on January It had cost Moore $ but had $
in accumulated depreciation at the time of this transfer. The price was $ in cash. At that
time the building had a fiveyear remaining life.
What is the goodwill at the acquisition date?
What is the ECOBV amortization?
Determine the unrealized gain on the sale of the building from Moore to Kirby in
Determine the unrealized profits on the transfer of inventory from Kirby to Moore in
and
Determine the balance of Investment in Kirby at December The parent company
uses the equity method to account for the investment.
Determine the balance of Equity in Kirbys earnings at December The parent
company uses the equity method to account for the investment.
Prepare the consolidation journal entries.
Complete the consolidation Worksheet and then answer the following questions:
a What is the total consolidated revenue?
b What is the total consolidated cost of goods sold?
c What is the consolidated total for buildings at December
d What is the consolidated total for inventory at December
Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
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