From consolidation entries S, A, I, and D, the balance of Investment in Allie Co. has $724,000 credit at the end of 2018. Prepare Entry *C consolidation worksheet entries for December 31, 2018(t+2). ?

What is the Equity in Allie Co. income balance on Choco's books as of December 31, 2018(t+2), if the initial value method has been applied? ?

Prepare Entry I, consolidation worksheet entries for December 31, 2018(t+2).

From consolidation entry S, A, I, and D, the balance of Investment in Allie Co. has $674,000 credit at the end of 2018. Prepare Entry *C consolidation worksheet entries for December 31, 2018(t+2).

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Choco Inc. acquired all of the outstanding common stock of Allie Co. on January 1, 2017(t), for $620,000 cash. Following is the balance sheet for Allie Co. in December 31, 2016. Book Value Fair Value FV-BV Current assets Building (30 years) Equipment (10 years) Total liabilities Net assets Common stock Additional paid in capital Retained earnings 12/31/2016 Total Stockholders' equity Total liabilities and Stockholders' equity Allie (subsidiary) 2017(t+1) $100,000 200,000 300,000 $(140,000) $(140,000) $460,000 $560,000 $(200,000) (150,000) (110,000) $(460,000) $(600,000) Net income Dividends $(70,000) $100,000 260,000 340,000 2018(t+2) Net income $10,000 $(60,000) Dividends $10,000 After Choco's acquisition, Allie Co. didn't had any changes in common stock and additional paid in capital. Choco Inc. acquired all of the outstanding common stock of Allie Co. on January 1, 2017(t), for $620,000 cash. Following is the balance sheet for Allie Co. in December 31, 2016. Book Value Fair Value FV-BV Current assets Building (30 years) Equipment (10 years) Total liabilities Net assets Common stock Additional paid in capital Retained earnings 12/31/2016 Total Stockholders' equity Total liabilities and Stockholders' equity Allie (subsidiary) 2017(t+1) $100,000 200,000 300,000 $(140,000) $(140,000) $460,000 $560,000 $(200,000) (150,000) (110,000) $(460,000) $(600,000) Net income Dividends $(70,000) $100,000 260,000 340,000 2018(t+2) Net income $10,000 $(60,000) Dividends $10,000 After Choco's acquisition, Allie Co. didn't had any changes in common stock and additional paid in capital.

Answer rating: 100% (QA)

Calculation of goodwill of Allie Co the aquisation date Particulars Amount Purchase Consideration ca... View the full answer