On December 31, 2011, Purple Corp. purchased Sand Company for: $ 20,000,000 Sand Company's balance sheet...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On December 31, 2011, Purple Corp. purchased Sand Company for: $ 20,000,000 Sand Company's balance sheet at the time of acquisition is provided below. Cash Account Receivable Inventory Plant and Equipment Building - HQ Land Total Assets Liabilities Mortgage Long-term debt Total Liabilities Common Stock, $1 par value APIC RE Sub Total Treasury Shares (3,000 shares) Total Equity Toal Liabilities and Equity Balance Sheet 12/31/2011 $ 250,000 $ 1,500,000 $ 7,000,000 $ 14,000,000 $ 2,000,000 $ 250,000 $ 25,000,000 $ 4,500,000 $ 6,500,000 $ 3,500,000 $ 14,500,000 80% of the outstanding common stock of 150,000 $ 3,400,000 $ 8,100,000 $ 11,650,000 $ 1,150,000 $ 10,500,000 $ 25,000,000 Fair Value 12/31/2011 Ś 250,000 $1,500,000 $ 4,000,000 $14,000,000 $ 2,000,000 $ 2,250,000 $24,000,000 $ 4,500,000 $ 6,500,000 $ 3,000,000 $14,000,000 sssss $ $ ssss $ $ $ Difference BV vs. FV Based on the above data, prepare the elimination entries necessary to complete the consolidated financial statement workpaper. Instructor Hint: Prepare the CAD first. The CAD has been partially completed below. (3,000,000) 2,000,000 (1,000,000) 500,000 500,000 Based on the above data, prepare the elimination entries necessary to complete the consolidated financial statement work paper. Instructor Hint: Prepare the CAD first. The CAD has been partially completed below. Percentage Puchased: Fair Value Given Up Book Value Received Difference 80% Parent $ 20,000,000 $ 8,400,000 $ 11,600,000 20% NCI $ 5,000,000 2,100,000 $ 2,900,000 $ $ $ 100% Total Implied 25,000,000 10,500,000 14,500,000 On December 31, 2011, Purple Corp. purchased Sand Company for: $ 20,000,000 Sand Company's balance sheet at the time of acquisition is provided below. Cash Account Receivable Inventory Plant and Equipment Building - HQ Land Total Assets Liabilities Mortgage Long-term debt Total Liabilities Common Stock, $1 par value APIC RE Sub Total Treasury Shares (3,000 shares) Total Equity Toal Liabilities and Equity Balance Sheet 12/31/2011 $ 250,000 $ 1,500,000 $ 7,000,000 $ 14,000,000 $ 2,000,000 $ 250,000 $ 25,000,000 $ 4,500,000 $ 6,500,000 $ 3,500,000 $ 14,500,000 80% of the outstanding common stock of 150,000 $ 3,400,000 $ 8,100,000 $ 11,650,000 $ 1,150,000 $ 10,500,000 $ 25,000,000 Fair Value 12/31/2011 Ś 250,000 $1,500,000 $ 4,000,000 $14,000,000 $ 2,000,000 $ 2,250,000 $24,000,000 $ 4,500,000 $ 6,500,000 $ 3,000,000 $14,000,000 sssss $ $ ssss $ $ $ Difference BV vs. FV Based on the above data, prepare the elimination entries necessary to complete the consolidated financial statement workpaper. Instructor Hint: Prepare the CAD first. The CAD has been partially completed below. (3,000,000) 2,000,000 (1,000,000) 500,000 500,000 Based on the above data, prepare the elimination entries necessary to complete the consolidated financial statement work paper. Instructor Hint: Prepare the CAD first. The CAD has been partially completed below. Percentage Puchased: Fair Value Given Up Book Value Received Difference 80% Parent $ 20,000,000 $ 8,400,000 $ 11,600,000 20% NCI $ 5,000,000 2,100,000 $ 2,900,000 $ $ $ 100% Total Implied 25,000,000 10,500,000 14,500,000
Expert Answer:
Answer rating: 100% (QA)
part II part III Computation and Allocation Schedule for the difference between book v... View the full answer
Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
Students also viewed these banking questions
-
Jen and Berry's sells ice-creams from its factory-shop in Petone. There is a managing director (Maynard Dibble), a marketing manager (Mary Salman) and a production manager (Peter Pritchard). Maynard...
-
Read the case study and answer the question below with a one page response. What does a SWOT analysis reveal about the overall attractiveness of Under Armours situation? Founded in 1996 by former...
-
Easy Chair Company purchased 40 percent ownership of Stuffy Sofa Corporation on January 1, 20X1, for $150,000. Stuffy Sofas balance sheet at the time of acquisition was as follows: During 20X1 Stuffy...
-
a. If hoe = 20S at IC = 1 mA of Fig. 5.124, what is the approximate value of h" at lC = 10 mA? b. Determine its resistive value at 10 mA and compare to a resistive load of 6.8 k. Is it a good...
-
On December 31, 2010, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2011, Berclair...
-
After Chris completed the ratio analysis for S&s Air, Mark and Todd approached him about planning for next year's sales. The company had historically used little planning for investment needs. As a...
-
Trane Comfort Specialists, Inc., reported the following stockholders' equity on its balance sheet at June \(30,2008\). Requirements 1. Identify the different issues of stock that Trane has...
-
A scientist proposed the following equation of state: p = RT/Vm - B/v2m + Cv3m Show that the equation leads to critical behaviour. Find the critical constants of the gas in terms of Band C and an...
-
Part of FINAL HW Assignment due May 1st The balance sheets of Weinstein's Nordic Italian Cuisine Inc. at December 31, 2023 and December 31, 2024 and the related Income statement for the year ended...
-
Quincy Corp. began operations on January 1, 20x1. The corporate charter authorizes the issuance of 500,000 shares of $10 par common stock and 100,000 shares of $50 par, 5% preferred stock.
-
Critically assess how leadership style can affect the dynamics of a group. The Importance of leadership at organizational level An Assessment of different leadership styles followed by example of a...
-
A 0.500 kg mass is attached to a spring of constant 150 N/m. A driving force F(t) = ( 12.0N) cos(wt) is applied to the mass, and the damping coefficient b is 6.00 Ns/m. What is the amplitude (in cm)...
-
The following information is available from Ruby's financial records as at December 1, 2022. Cash $25,000 Furniture 8,000 Content of Home 5,000 House 300,000 Line of Credit 45,000 Mortgage 285,000...
-
Acme Company uses process costing. During the current month, the third processing department's beginning work in process inventory includes 2,400 units that are 45% complete with respect to direct...
-
Design a marketing strategy for Indian Oil Corporation ( IOC ) to invest in urban Berlin Discuss the various products in your petro retail station that could cater to the specific customers ? Justify...
-
Basic but detailed Information about the firm under consideration, including its historical evolution, areas of activity, i.e., type of goods/service it provides, geographical operations, management...
-
What is the essence or the central meaning of GRC? amework for managing financial risks and ensuring fiscal responsibility A set of guidelines and regulations for corporate governance and ethical...
-
What types of questions can be answered by analyzing financial statements?
-
The following financial statements were prepared on December 31, Year 6. Additional Information Pearl purchased 75% of the outstanding voting shares of Silver for $2,400,000 on July 1, Year 2, at...
-
Required: (a) What method of accounting would you recommend Magno Industries use for its investment in Grille-to-Bumper Automotive common shares? As part of your answer, discuss the alternatives...
-
The consolidated income statement of a parent and its 90%-owned subsidiary appears below. It was prepared by an accounting student before reading this chapter. consolidated income statement...
-
For an ideal solution, isotherm on an enthalpy-concentration diagram will be (a) Parabola (b) Hyperbola (c) Sine curve (d) Straight line
-
For a reversible process, change in entropy of the system (a) Approaches to zero (b) Increases (c) Decreases (d) Remains constant
-
For a multi-component system, the chemical potential is equivalent to (a) Molar free energy (b) Molar concentration difference (c) Molar free energy change (d) Partial molar free energy
Study smarter with the SolutionInn App