On January, year 2, Shrimp paid $300,000 to purchase 80% of Scallop's common stock. The fair value of the noncontrolling interest equals 20% of the implied fair value of the acquire. On that date, the fair values of Scallop's inventories and plant assets exceeded their carrying amounts by $12,500 and $75,000, respectively. The remaining assets and all liabilities are reported at fair value. Shrimp funded the purchase with a loan. Enter in the cells below the correct balance amount for each consolidated balance sheet line item.

Note: The data required to answer this question is located in the excel file titled “04-1 Information for Simulation”

Consolidated Balance Sheet Line Item                                                            Balance Immediately after acquisition

1. Consolidated current assets

2. Consolidated noncurrent assets

3. Consolidated current liabilities

4. Consolidated noncurrent liabilities

5. Noncontrolling interest

6. Shrimp's equity (total of above)

Answer rating: 100% (QA)

ANSWERS 1 Consolidated current assets 437500 2 Consolidated noncurrent assets 825000 3 C... View the full answer