ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 4, Problem 4.3E
To determine
Concept Introduction:
Equity Method of valuation of investment: In this method, parent company value investment at the historical cost of the investment plus apportioned profit less dividend paid by the subsidiary company.
To Prepare:
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Putt Corporation acquired 80 percent of Slice Company's voting common stock on January 1, 20X4, for $144,000. At that date, the fair
value of the noncontrolling interest was $36,000. Slice's balance sheet at the date of acquisition contained the following balances:
Cash
Accounts Receivable
Land
Building and Equipment
Less: Accumulated Depreciation
Total Assets
SLICE COMPANY
Balance Sheet
January 1, 20X4
$24,000
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91,000
318,000
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$ 390,000 Total Liabilities and Stockholders' Equity
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$ 31,000
222,000
92,000
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$ 390,000
At the date of acquisition, the reported book values of Slice's assets and liabilities approximated fair value.
Required:
Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business
combination.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first…
Professor Corporation acquired 70 percent of Scholar Corporation's common stock on December 31, 20X4, fr $102,200. The fair
value of the noncontrolling interest at that date was determined to be $43,800. Data from the balance sheets of the two companies
Included the following amounts as of the date of acquisition:
Item
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Accounts Receivable
Inventory
Land
Buildings & Equipment
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Investment in Scholar Corporation
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Common Stock
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Professor
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$
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90,000
Scholar
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44,000
130,000
75,000
60,000
30,000
410,000
250,000
(150,000)
(80,000)
102,200
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$340,000
$
152,500
$ 35,000
250,000
180,000
80,000
40,000
210,000
85,000
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At the date of the business combination, the book values of Scholar's assets and liabilities approximated fair value except for
Inventory, which had a fair value of $81,000, and…
1. S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the “Investment in F” account on S’s financial records at the acquisition date?
Chapter 4 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 4 - When is the carrying value of the investment...Ch. 4 - What is a differential? How is a differential...Ch. 4 - Prob. 4.3QCh. 4 - Prob. 4.4QCh. 4 - Prob. 4.5QCh. 4 - Prob. 4.6QCh. 4 - Prob. 4.7QCh. 4 - Prob. 4.8QCh. 4 - Prob. 4.9QCh. 4 - Prob. 4.10Q
Ch. 4 - Prob. 4.11QCh. 4 - What determines whether the balance assigned to...Ch. 4 - What does the termpushdown accountingmean?Ch. 4 - Under what conditions is push-down accounting...Ch. 4 - Prob. 4.15QCh. 4 - Prob. 4.2CCh. 4 - Prob. 4.3CCh. 4 - Prob. 4.4CCh. 4 - Prob. 4.1ECh. 4 - Prob. 4.2ECh. 4 - Prob. 4.3ECh. 4 - Prob. 4.4ECh. 4 - Prob. 4.5ECh. 4 - Prob. 4.6ECh. 4 - Prob. 4.7ECh. 4 - Prob. 4.8ECh. 4 - Prob. 4.9ECh. 4 - Prob. 4.10.1ECh. 4 - Prob. 4.10.2ECh. 4 - Prob. 4.10.3ECh. 4 - Prob. 4.10.4ECh. 4 - Prob. 4.10.5ECh. 4 - Prob. 4.11.1ECh. 4 - Prob. 4.11.2ECh. 4 - Prob. 4.11.3ECh. 4 - Prob. 4.11.4ECh. 4 - Prob. 4.12ECh. 4 - Prob. 4.13ECh. 4 - Prob. 4.14ECh. 4 - Prob. 4.15ECh. 4 - Prob. 4.16ECh. 4 - Prob. 4.17ECh. 4 - Prob. 4.18.1ECh. 4 - Prob. 4.18.2ECh. 4 - Prob. 4.18.3ECh. 4 - Prob. 4.18.4ECh. 4 - Prob. 4.18.5ECh. 4 - Prob. 4.18.6ECh. 4 - Prob. 4.19ECh. 4 - Prob. 4.20ECh. 4 - Prob. 4.21ECh. 4 - Prob. 4.22ECh. 4 - Prob. 4.23ECh. 4 - Prob. 4.24AECh. 4 - Prob. 4.25PCh. 4 - Prob. 4.26PCh. 4 - Prob. 4.27PCh. 4 - Consolidated Balance Sheet Powder Company spent...Ch. 4 - Prob. 4.29PCh. 4 - Prob. 4.30PCh. 4 - Prob. 4.31PCh. 4 - Prob. 4.32PCh. 4 - Prob. 4.33PCh. 4 - Prob. 4.34PCh. 4 - Prob. 4.35PCh. 4 - Prob. 4.36PCh. 4 - Prob. 4.37AP
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