On January 1, 2016, Fuller Company acquired a 80% interest in Wilson Company for a ourchase...

  

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On January 1, 2016, Fuller Company acquired a 80% interest in Wilson Company for a ourchase price that was $240,000 over the book value of the Wilson's Stockholders Equity on the acquisition date. Fuller uses the equity method to account for its investment in Wilson. Fuller assigned the acquisition-date AAP as follows: AAP Items PPE, net Initial Fair Value Useful Life (vears) 150,000 90,000 $240,000 Patent 20 15 Wilson sells inventory to Fuller (upstream) which includes that inventory in products that it, ultimately, sells to customers outside of the controlled group. You have compiled the following data for the years ending 2018 and 2019: Transfer price for inventory sale Cost of goods sold Gross profit % inventory remaining Gross profit deferred 2018 S70,000 (45,000) $25,000 20% $ 5,000 2019 $94,500 (64,500) $30,000 30% $ 9,000 EOY Receivable/Payable S29,500 $32,000 The inventory not remaining at the end of the year has been sold outside of the controlled group. The parent and the subsidiary report the following financial statements at December 31, 2019: Income Statement Fuller $4,160,000 (3.098,100) 1,061,900 49,200 (711,200) 399.900 Wilson $401,600 (232 700) 168,900 Sales Cost of goods sold Gross Profit Income (loss) from subsidiary Operating expenses Net income (89.900) S 79.000 BOY Retained Earnings Net income Dividends EOY Retained Earnings Statement of Retained Earnings Fuller $2,696,120 399,900 (74.500) $3.021.520 Wilson $404,400 79,000 (8.900) $474,500 Balance Sheet Fuller Wilson Assets: Cash 84,700 2$ 113,200 142,100 Accounts receivable Inventory Equity Investment PPE, net $ 309,420 433,600 641,900 774,400 4.063,200 $6.222,520 800,500 $1,140,500 Liabilities and Stockholders' Equity: Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings $ 505,900 703,500 402,000 1,589,600 3.021,520 $6,222,520 $ 99,500w 250,000 75,300 241,200 474,500 $1,140,500 BIOS 000,0r2 000.22 Required: Compute the EOY noncontrolling interest equity balance b. a. Prepare the consolidation journal entries. 000,CE 002.es2 On January 1, 2016, Fuller Company acquired a 80% interest in Wilson Company for a ourchase price that was $240,000 over the book value of the Wilson's Stockholders Equity on the acquisition date. Fuller uses the equity method to account for its investment in Wilson. Fuller assigned the acquisition-date AAP as follows: AAP Items PPE, net Initial Fair Value Useful Life (vears) 150,000 90,000 $240,000 Patent 20 15 Wilson sells inventory to Fuller (upstream) which includes that inventory in products that it, ultimately, sells to customers outside of the controlled group. You have compiled the following data for the years ending 2018 and 2019: Transfer price for inventory sale Cost of goods sold Gross profit % inventory remaining Gross profit deferred 2018 S70,000 (45,000) $25,000 20% $ 5,000 2019 $94,500 (64,500) $30,000 30% $ 9,000 EOY Receivable/Payable S29,500 $32,000 The inventory not remaining at the end of the year has been sold outside of the controlled group. The parent and the subsidiary report the following financial statements at December 31, 2019: Income Statement Fuller $4,160,000 (3.098,100) 1,061,900 49,200 (711,200) 399.900 Wilson $401,600 (232 700) 168,900 Sales Cost of goods sold Gross Profit Income (loss) from subsidiary Operating expenses Net income (89.900) S 79.000 BOY Retained Earnings Net income Dividends EOY Retained Earnings Statement of Retained Earnings Fuller $2,696,120 399,900 (74.500) $3.021.520 Wilson $404,400 79,000 (8.900) $474,500 Balance Sheet Fuller Wilson Assets: Cash 84,700 2$ 113,200 142,100 Accounts receivable Inventory Equity Investment PPE, net $ 309,420 433,600 641,900 774,400 4.063,200 $6.222,520 800,500 $1,140,500 Liabilities and Stockholders' Equity: Current Liabilities Long-term Liabilities Common Stock APIC Retained Earnings $ 505,900 703,500 402,000 1,589,600 3.021,520 $6,222,520 $ 99,500w 250,000 75,300 241,200 474,500 $1,140,500 BIOS 000,0r2 000.22 Required: Compute the EOY noncontrolling interest equity balance b. a. Prepare the consolidation journal entries. 000,CE 002.es2

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