Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $107.800. At that date, the fair value ofSevers buildings and equipment was $18,000 more than the book value. Accumulated depreciation on this date was $2400Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price's management concluded atDecember 31, 20X8, that goodwill Involved in its acquisition of Saver shares had been impaired and the correct carrying value was$2.100. No additional impairment occurred in 20X9.Trial balance data for Price and Saver on December 31, 20X9, are as followsSaver ConpanyDebit337,00023, 0033,00034, 000151,000Price CorporationDebit54, S091,000101,00e70,000357, 0e122, 30e138, e0014,00024,0e11,00022,00035, 00CreditItemCashAccounts ReceivableInveetoryLanduildings tauipnentInvestnent in Saver ConpanyCost of doods SoldMage tapenseDepreciation ExpenseInterest EKpenseOther ExpersesDividends DeclaredAccumulated DepreciationAccounts PayableHagen PayableNotes PayathleConnon StockRetaihed KamangsAlesnco fro Saver ConpanyCredit107, ee19,0010, 02,00015,00037,200$ 167,00045,0,000132, 00182, 000177, 00299,00051.200$1,061, 0e s1.061. 00$44,0009,0005,000114,200$a.0009.000206$468,200$46,200Required:a Prepare all consolidating entries needed to prepare a three-part consolidation worksheet as of December 31, 20x9. of no entry lsrequired for e transaction/event, select "No Journal entry requlred" In the first account fleld.)view transaction istConsolidationWorksheet EntriesAB<.Record the basic consolidation entry.

Consolidation Journal Entry While making the consolidation journal entry parent company make the…

Answered: DAvidends Cecared Accumulated…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 19E

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Short Corporation acquired Hathaway, Inc., for $32,620,000. The fair value of all Hathaway's identifiable tangible and intangible assets was $31,800,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition?
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $120,600. At that date, the fair value of Saver's buildings and equipment was $19,000 more than the book value. Accumulated depreciation on this date was $17,000. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price’s management concluded at December 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $2,000. No additional impairment occurred in 20X9. Trial balance data for Price and Saver on December 31, 20X9, are as follows: Price Corporation Saver Company Item Debit Credit Debit Credit Cash $ 53,500 $ 36,000 Accounts Receivable 88,000 15,000 Inventory 100,000 25,000 Land 58,000 26,000 Buildings & Equipment 364,000 152,000…
On January 1, 20Y3, The Simmons Group, Inc., purchased the assets of NWS Insurance Co. for $40,610,000, a price reflecting an $4,061,000 goodwill premium. On December 31, 20Y9, The Simmons Group determined that the goodwill from the NWS acquisition was impaired and had a value of only $1,522,875. Determine the book value of the goodwill on December 31, 20Y9, prior to making the impairment adjustment.
The net book value of Falcon Inc.'s property, plant, and equipment (PP&E) was $734,550 on January 1, 20Y4, and $658,000 on December 31, 20Y4. During 20Y4, Falcon recognized $50,400 of depreciation expense on the PP&E, acquired $215,800 of new PP&E, and recognized a $5,600 loss on the sale of old PP&E. How much cash did Falcon receive from the sale of PP&E during 20Y4? O $236.350 O $241,950 O $247.550 O $286.750 O None of the above
Brinker International Inc.the parent of Chili's, acquired Thallicious for $32,170,000. The fair value of all Thailicioustangible and intangible assets was $30.000.000 Brinker will amortize any goodwill over the maximum number of years allowedWhat is the annual amortization of goodwill for this acquisition?
Cheyenne Corporation purchased Sage Hill Company 3 years ago and at that time recorded goodwill of $320,000. The Sage Hill Division’s net assets, including the goodwill, have a carrying amount of $640,000. The fair value of the division is estimated to be $840,000.Prepare Cheyennes' journal entry, if necessary, to record impairment of the goodwill.
Sheffield Corporation purchased Sage Hill Company 3 years ago and at that time recorded goodwill of $460,000. The Sage Hill Division’s net assets, including the goodwill, have a carrying amount of $840,000. The fair value of the division is estimated to be $792,000.Prepare Sheffields' journal entry, if necessary, to record impairment of the goodwill.
Lake Incorporated purchased all of the stock of Huron Company, paying $950,000 cash. Lake also assumed all of the liabilities of Huron. Book values and fair values of the acquired assets and liabilities were: Book value Fair value Current assets (net) $130,000 $125,000 Property, plant & equipment (net) 600,000 750,000 Liabilities 150,000 175,000 Required:What amount of Goodwill should Lake Inc. record in connection with this purchase?
Waters Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $400,000. The Johnson Division’s net assets, including the goodwill, have a carrying amount of $800,000. The fair value of the division is estimated to be $1,000,000. Assume that the fair value of the division is estimated to be $750,000 and the implied goodwill is $350,000. Prepare Waters’ journal entry, if necessary, to record impairment of the goodwill.
Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $13,160,000 in cash. The book value of Smith's net assets (assets minus liabilities) was $9,600,000. The fair values of all of Smith's assets and liabilities were equal to their book values with the following exceptions: Receivables Property, plant, and equipment Intangible assets Required: Calculate the amount paid for goodwill. Goodwill Book Value $3,100,000 9,800,000 380,000 Fair Value $2,720,000 11,380,000 1,560,000
Waters Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $400,000. The Johnson Division's net assets, including the goodwill, have a carrying amount of $800,000. The fair value of the division is estimated to be $1,000,000. Prepare Waters' journal entry, if necessary, to record impairment of the goodwill.
On September 1, 20Y8, Vernon Corporation acquired Barlow Enterprises for a cash payment of $2,300,000. At the time of acquisition, Barlow's balance sheet showed assets of $1,800,000, liabilities of $600,000, and owner's equity of $1,200,000. A recent appraisal indicated that the fair value of Barlow's assets is estimated to be $2,100,000. How much goodwill was generated due to this acquisition? What is the net dollar value impact this transaction had on assets? What is the net dollar value impact this transaction had on liabilities? What is the net dollar value impact this transaction had on equity?

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