Reid Corporation's balance sheet at January 1, 20X9 reflected the following balances: Cash & Receivables $...
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Reid Corporation's balance sheet at January 1, 20X9 reflected the following balances: Cash & Receivables $ 30,000 Inventory $ 75,000 Land $125,00 Building & Equipment (net) $850,000 Common Stock $550,000 Retained Earnings $400,000 $1,180,000 Total Liabilities & Stockholders E $1,180,000 Total Assets $ 90,000 Accounts Payable $150,000 Income Taxes Payable $ 90,000 Bonds Payable Brown Corporation entered into an active acquisition program and acquired 75 percent of Reid's common stock on January 2, 20X9 for $720,000. The fair value of noncontrolling interest at that date wad determined to be $150,000. A careful review of the fair value of Reid's assets and liabilities indicated the following: Inventory Land Building & Equipment (net) Book Value $150,000 $ 90,000 $ 850,000 a. Inventory b. Land Goodwill is assigned proportionately to Brown and the noncontrolling shareholders. Required: Compute the appropriate amount related to Reid to be included in the consolidated balance sheet immediately following the acquisition for each of the following items: Fair Value $190,000 $ 70,000 $975,000 C. Building and equipment (net) d. Good well e. Investment in Reid Corporation f. Noncontrolling interest Reid Corporation's balance sheet at January 1, 20X9 reflected the following balances: Cash & Receivables $ 30,000 Inventory $ 75,000 Land $125,00 Building & Equipment (net) $850,000 Common Stock $550,000 Retained Earnings $400,000 $1,180,000 Total Liabilities & Stockholders E $1,180,000 Total Assets $ 90,000 Accounts Payable $150,000 Income Taxes Payable $ 90,000 Bonds Payable Brown Corporation entered into an active acquisition program and acquired 75 percent of Reid's common stock on January 2, 20X9 for $720,000. The fair value of noncontrolling interest at that date wad determined to be $150,000. A careful review of the fair value of Reid's assets and liabilities indicated the following: Inventory Land Building & Equipment (net) Book Value $150,000 $ 90,000 $ 850,000 a. Inventory b. Land Goodwill is assigned proportionately to Brown and the noncontrolling shareholders. Required: Compute the appropriate amount related to Reid to be included in the consolidated balance sheet immediately following the acquisition for each of the following items: Fair Value $190,000 $ 70,000 $975,000 C. Building and equipment (net) d. Good well e. Investment in Reid Corporation f. Noncontrolling interest
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Inventory Fair value 190000 Land Fair value 70000 Building and equipment Fair value 975000 Goo... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
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