Suppose a parent company acquired a subsidiary on January 1, 2015 for $2,186,000. The purchase price was $1,066,200 above the
Suppose a parent company acquired a subsidiary on January 1, 2015 for $2,186,000. The purchase price was $1,066,200 above the subsidiary's book value of stockholders' equity of $1,119,800 on the acquisition date. Of this excess purchase price, $602,000 was allocated to Property, Plant and Equipment with a remaining economic useful life of 10 years and $464,200 was allocated to Goodwill. On the acquisition date, the subsidiary reported retained earnings equal to $847,550. The parent company uses the cost method of accounting for capital investments prior to consolidation. The financial statements of the parent company and its subsidiary for the year ended December 31, 2016 are as follows:
|Statement of income||Balance sheet|
|Cost of goods sold||(5.989.500)||(1.089.000)||Money||$1,567,280||$468,600|
|Gross profit||2.329.250||811.000||Accounts receivable||2.462.900||421.300|
|Operating expenses||(1.247.840)||(556.900)||Capital investment||2.186.000||-|
|Lingresos grandchildren||$1,118,810||$254,100||Property, plant and equipment||17.189.920||1.000.450|
|Statement of retained earnings||$26,882,950||$2,431,000|
|BOY retained earnings||5.801.070||937.750||Liabilities and equity|
|Lingresos grandchildren||1.118.810||254.100||Accounts payable||$1,217,920||$173,030|
|Finalize retained earnings||$6,657,310||$1,154,450||Long term passives||10.587.500||605.000|
For what amount will the following accounts appear in the consolidated financial statements?
Do not use negative signs with any of your answers.
|F.||Property, plant and equipment, net||$Answer|