Provide Step by Step Instructions. Acme Corporation has been operating profitably since its creation in 1 9
Question:
Provide Step by Step Instructions.
Acme Corporation has been operating profitably since its creation in ?At the beginning of ?Acme acquired a ?percent ownership in Beta Company. At the acquisition date, Acme prepared the following fairvalue allocation schedule:
Consideration transferred for ?interest in Beta $
Fair value of the ?noncontrolling interest
Beta business fair value $
Beta book value
Excess fair value over book value $
Assignments to adjust Betas assets to fair value:
To buildings year remaining life ?$ ?
To equipment year remaining life ?
To franchises year remaining life ?
To trademarks indefinite life
?
Acme regularly buys inventory from Beta at a markup of ?percent more than cost. Acme's purchases during ?and ?and related ending inventory balances follow:
Year IntraEntity Purchases Remaining IntraEntity Inventory ?End of Year at transfer price
?$ ?$
During ?Acme acquired additional inventory from Beta at a price of $ ?Of this merchandise, ?percent is still held at yearend.
On January ?Acme and Beta acted together as coacquirers of ?percent of Cade Company's outstanding common stock. The total price of these shares was $ ?indicating neither goodwill nor other specific fairvalue allocations. Each company put up onehalf of the consideration transferred.
Items Acme Corporation Beta Company Cade Company
Sales and other revenues $ ?$ ?$
Cost of goods sold
Operating expenses
Income of Beta Company
Income of Cade Company
Net income $ ?$ ?$
Retained earnings, ?$ ?$ ?$
Net income above
Dividends declared
Retained earnings, ?$ ?$ ?$
Cash and receivables $ ?$ ?$
Inventory
Investment in Beta Company
Investment in Cade Company
Buildings
Equipment
Land
Total assets $ ?$ ?$
Liabilities $ ?$ ?$
Common stock
Retained earnings,
Total liabilities and equities $ ?$ ?$
Note: Parentheses indicate a credit balance.
Required:
Using the three companies ?financial records for ?prepare a consolidation worksheet. The equity method has been applied to each investment.tableAccountstableAcmeCorporationtableBetaCompanytableCadeCompanyConsomastontantines,tableNoncontrollingInteresttableConsolidatedBalanceDebitCreditSales and other revenue,
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni