Sales The companies' financial statements for the year ending December 31, 2021, follow: Bears (366,000) $...

   

Transcribed Image Text:

Sales The companies' financial statements for the year ending December 31, 2021, follow: Bears (366,000) $ Seahawks (862,000) Cost of goods sold $15,000 209,000 Depreciation expense 191,200 67,000 Equity in Bears' earnings (79,200) 0 Separate company net income $ (235,000) $ (90,000) Retained earnings 1/1 $ (500,000) (278,000) Net income (235,000) (90,000) Dividends declared 130,000 27,000 Retained earnings 12/31 (605,000) $(341,000). Cash and receivables Inventory Investment in Bears. Property and equipment (net) Total assets Liabilities Common stock-Seahawks Common stock-Bears Retained earnings 12/31 Total liabilities and owners' equity 0 (150,000) (605,000) (341,000) $ (1,842,900) $ (546,000) At year-end, there were no intra-entity receivables or payables. Please answer the following four questions. a. Compute the goodwill allocation to the controlling and noncontrolling interest. S 135,000 $ 82,000 255,000 136,000 488,900 0 964,000 328,000 $ 1,842,900 $ 546,000 $ (722,900) $ (55,000) (515,000) 0 Sales The companies' financial statements for the year ending December 31, 2021, follow: Bears (366,000) $ Seahawks (862,000) Cost of goods sold $15,000 209,000 Depreciation expense 191,200 67,000 Equity in Bears' earnings (79,200) 0 Separate company net income $ (235,000) $ (90,000) Retained earnings 1/1 $ (500,000) (278,000) Net income (235,000) (90,000) Dividends declared 130,000 27,000 Retained earnings 12/31 (605,000) $(341,000). Cash and receivables Inventory Investment in Bears. Property and equipment (net) Total assets Liabilities Common stock-Seahawks Common stock-Bears Retained earnings 12/31 Total liabilities and owners' equity 0 (150,000) (605,000) (341,000) $ (1,842,900) $ (546,000) At year-end, there were no intra-entity receivables or payables. Please answer the following four questions. a. Compute the goodwill allocation to the controlling and noncontrolling interest. S 135,000 $ 82,000 255,000 136,000 488,900 0 964,000 328,000 $ 1,842,900 $ 546,000 $ (722,900) $ (55,000) (515,000) 0

Answer rating: 100% (QA)

Answer To compute the goodwill allocation to the controlling and noncontrolling interes... View the full answer