Python acquired 75% of Slither's stock for $316 million in cash on January 2, 2015. The...

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Python acquired 75% of Slither's stock for $316 million in cash on January 2, 2015. The fair value of the noncontrolling interest in Slither was $89 million. Slither's book value at that time was $120 million. The assets and liabilities reported on Slither's balance sheet had balances that approximated fair value at the date of acquisition. However, Slither had previously unreported developed technology (10 year life, straight-line), valued at $40 million. There has been no impairment loss on the developed technology since acquisition. Goodwill was impaired $6 million in 2015, and a $3 million impairment loss should be recorded for 2016. It is now December 31, 2016. The trial balances of Python and Slither appear below. (in thousands) Current assets Plant assets, net Investment in Slither A Liabilities Capital stock Retained earnings, Jan. 1 Accumulated other comprehensive income, Jan. 1 Treasury stock Sales revenue Equity in net income of Slither Equity in OCI of Slither Cost of goods sold Amortization and depreciation expense Other operating expenses Other comprehensive income Total Python Dr (Cr) $ 113,500 1,200,000 323,800 (1,342,950) (40,000) (215,000) (15,000) $ - (400,000) (2,100) (2,250) 250,000 40,000 95,000 (5,000) Provide the consolidated financial statements as of December 31, 2016. Slither Dr (Cr) $ 35,000 500,000 - (387,000) (20,000) (110,000) (10,000) 5,000 (100,000) $ - 35,000 15,000 40,000 (3,000) 0 Python acquired 75% of Slither's stock for $316 million in cash on January 2, 2015. The fair value of the noncontrolling interest in Slither was $89 million. Slither's book value at that time was $120 million. The assets and liabilities reported on Slither's balance sheet had balances that approximated fair value at the date of acquisition. However, Slither had previously unreported developed technology (10 year life, straight-line), valued at $40 million. There has been no impairment loss on the developed technology since acquisition. Goodwill was impaired $6 million in 2015, and a $3 million impairment loss should be recorded for 2016. It is now December 31, 2016. The trial balances of Python and Slither appear below. (in thousands) Current assets Plant assets, net Investment in Slither A Liabilities Capital stock Retained earnings, Jan. 1 Accumulated other comprehensive income, Jan. 1 Treasury stock Sales revenue Equity in net income of Slither Equity in OCI of Slither Cost of goods sold Amortization and depreciation expense Other operating expenses Other comprehensive income Total Python Dr (Cr) $ 113,500 1,200,000 323,800 (1,342,950) (40,000) (215,000) (15,000) $ - (400,000) (2,100) (2,250) 250,000 40,000 95,000 (5,000) Provide the consolidated financial statements as of December 31, 2016. Slither Dr (Cr) $ 35,000 500,000 - (387,000) (20,000) (110,000) (10,000) 5,000 (100,000) $ - 35,000 15,000 40,000 (3,000) 0

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ANSWER SOLUTION Consolidated Balance Sheet Python Slither Consolidated Current assets 113500 0 11350... View the full answer