Problem Company owns 90 percent of Solution Dairys stock. The balance sheets of the two companies immediately
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Question:
Problem Company owns 90 percent of Solution Dairy’s stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts:
Problem Company | Solution Dairy | |||||||
Assets | ||||||||
Cash & Receivables | $ | 145,000 | $ | 82,000 | ||||
Inventory | 214,000 | 102,000 | ||||||
Land | 76,000 | 50,000 | ||||||
Buildings & Equipment (net) | 394,000 | 223,000 | ||||||
Investment in Solution Dairy | 270,000 | |||||||
Total Assets | $ | 1,099,000 | $ | 457,000 | ||||
Liabilities & Stockholders’ Equity | ||||||||
Current Payables | $ | 72,000 | $ | 26,000 | ||||
Long-Term Liabilities | 253,000 | 161,000 | ||||||
Common Stock | 392,000 | 60,000 | ||||||
Retained Earnings | 382,000 | 210,000 | ||||||
Total Liabilities & Stockholders’ Equity | $ | 1,099,000 | $ | 457,000 | ||||
The fair value of the noncontrolling interest at the date of acquisition was determined to be $30,000. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $9,000 plus $1,000 accrued interest. The solution had recorded the accrued interest, but Problem had not.
Required:
Prepare a consolidated balance sheet worksheet.
Related Book For
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
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