On January 1, 2024, Splish Company purchased 8,704 shares of Blossom Company's common stock for $115,000....

 

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On January 1, 2024, Splish Company purchased 8,704 shares of Blossom Company's common stock for $115,000. Immediately after the stock acquisition, the statements of financial position of Splish and Blossom appeared as follows: Assets Cash Accounts receivable Inventory Investment in Blossom Company Plant assets Accumulated depreciation-plant assets Total Liabilities and Owners' Equity Current liabilities Mortgage notes payable Common stock, $10 par value Other contributed capital Retained earnings Total (a1) Splish $40,870 57,470 38,730 115,000 160,480 (55,300) $357,250 Percentage of Blossom acquired $20,260 36,760 112,790 131,110 56,330 $357,250 Blossom $17,440 32,240 25,540 105,800 (18,540) $162,480 $24,580 108,800 17,500 11,600 $162,480 Calculate the percentage of Blossom acquired by Splish Company. % Prepare a schedule to compute the difference between book value of equity and the value implied by the purchase price. Any difference between the book value of equity and the value implied by the purchase price relates to subsidiary plant assets. $ $ Parent Share $ $ Non- Controlling Share Prepare a schedule to compute the difference between book value of equity and the value implied by the purchase price. Any difference between the book value of equity and the value implied by the purchase price relates to subsidiary plant assets. $ $ Parent Share Non- Controlling Share Entire Value Cash Accounts Receivable Inventory Investment in Blossom Difference between Implied and Book Value Plant Assets Accumulated Depreciation Total Current Liabilities Mortgage Note Payable Common Stock: Splish Company Blossom Company Other Contributed Capital Splish Company Blossom Company Retained Earnings: Splish Company Blossom Company Noncontrolling Interest Total Splish Company 40,870 57,470 38,730 115,000 160,480 (55,300) 357,250 20,260 36,760 112,790 131,110 56,330 357,250 Blossom Company 17,440 32,240 25,540 105,800 (18,540) 162,480 24,580 108,800 17,500 11,600 162,480 SPLISH COMPANY AND SUBSIDIARY BLOSSO Consolidated Balance Sheet Workpaper January 1, 2024 $ $ Debit Eliminations JU 7007 $ Cre E E LISH COMPANY AND SUBSIDIARY BLOSSOM Consolidated Balance Sheet Workpaper January 1, 2024 $ $ Debit Eliminations DE DE CO $ $ Credit $ Noncontrolling Interest [[ $ $ Consolidated Balance On January 1, 2024, Splish Company purchased 8,704 shares of Blossom Company's common stock for $115,000. Immediately after the stock acquisition, the statements of financial position of Splish and Blossom appeared as follows: Assets Cash Accounts receivable Inventory Investment in Blossom Company Plant assets Accumulated depreciation-plant assets Total Liabilities and Owners' Equity Current liabilities Mortgage notes payable Common stock, $10 par value Other contributed capital Retained earnings Total (a1) Splish $40,870 57,470 38,730 115,000 160,480 (55,300) $357,250 Percentage of Blossom acquired $20,260 36,760 112,790 131,110 56,330 $357,250 Blossom $17,440 32,240 25,540 105,800 (18,540) $162,480 $24,580 108,800 17,500 11,600 $162,480 Calculate the percentage of Blossom acquired by Splish Company. % Prepare a schedule to compute the difference between book value of equity and the value implied by the purchase price. Any difference between the book value of equity and the value implied by the purchase price relates to subsidiary plant assets. $ $ Parent Share $ $ Non- Controlling Share Prepare a schedule to compute the difference between book value of equity and the value implied by the purchase price. Any difference between the book value of equity and the value implied by the purchase price relates to subsidiary plant assets. $ $ Parent Share Non- Controlling Share Entire Value Cash Accounts Receivable Inventory Investment in Blossom Difference between Implied and Book Value Plant Assets Accumulated Depreciation Total Current Liabilities Mortgage Note Payable Common Stock: Splish Company Blossom Company Other Contributed Capital Splish Company Blossom Company Retained Earnings: Splish Company Blossom Company Noncontrolling Interest Total Splish Company 40,870 57,470 38,730 115,000 160,480 (55,300) 357,250 20,260 36,760 112,790 131,110 56,330 357,250 Blossom Company 17,440 32,240 25,540 105,800 (18,540) 162,480 24,580 108,800 17,500 11,600 162,480 SPLISH COMPANY AND SUBSIDIARY BLOSSO Consolidated Balance Sheet Workpaper January 1, 2024 $ $ Debit Eliminations JU 7007 $ Cre E E LISH COMPANY AND SUBSIDIARY BLOSSOM Consolidated Balance Sheet Workpaper January 1, 2024 $ $ Debit Eliminations DE DE CO $ $ Credit $ Noncontrolling Interest [[ $ $ Consolidated Balance

Answer rating: 100% (QA)

Steps Step 1 of 2 a1 Percentage of Blossom acquired by Splish Company Shares acquired by Splish company Total shares of Blossom Company Total shares o... View the full answer