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- Pop Corporation acquired 70% of Son Corporation for $350,000 cash on January 1, 2016. - After the acquisition, Pop consolidated Son's assets and liabilities into its balance sheet. Goodwill of $180,000 was recognized from the acquisition. - On March 31, 2014, Tobias AG purchased 90% of Mark AG for $8,100,000 cash. Mark AG had unrecorded patents of $100,000. - After the acquisition, Tobias allocated Mark AG's assets and liabilities. Goodwill of $300,000 was recognized from the acquisition.

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410 views

Tugas Akl

- Pop Corporation acquired 70% of Son Corporation for $350,000 cash on January 1, 2016. - After the acquisition, Pop consolidated Son's assets and liabilities into its balance sheet. Goodwill of $180,000 was recognized from the acquisition. - On March 31, 2014, Tobias AG purchased 90% of Mark AG for $8,100,000 cash. Mark AG had unrecorded patents of $100,000. - After the acquisition, Tobias allocated Mark AG's assets and liabilities. Goodwill of $300,000 was recognized from the acquisition.

Uploaded by

Febryanthi SN
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Nama: Febryanthi Setia Ningsi

NIM: A031201061

Pop Corporation acquired 70 percent of the outstanding common stock of Son Corporation on January 1, 2016, for $350,00
was as follows (in thousands):

SON
POP
BV FV
assets
Cash $ 70,000 $ 40,000 $ 40,000
Receivables-net $ 160,000 $ 60,000 $ 60,000
Inventories $ 140,000 $ 60,000 $ 100,000
Land $ 200,000 $ 100,000 $ 120,000
Buildings-net $ 220,000 $ 140,000 $ 180,000
Equipment-net $ 160,000 $ 80,000 $ 60,000
Investment in son $ 350,000
Total Assets $ 1,300,000 $ 480,000 $ 560,000
Liabilites and stockholder's equity
Accounts payable $ 180,000 $ 160,000 $ 160,000
Other liabilites $ 20,000 $ 100,000 $ 80,000
Capital stock, $20 par $ 1,000,000 $ 200,000
Retained earnings $ 100,000 $ 20,000
Total equities $ 1,300,000 $ 480,000

2.
1. Cost Of 70% of son $ 350,000
Implied Value of son $ 500,000
Book Value ($20,000+ $20,000) $ 220,000
ECO BV $ 280,000

Allocated To
Inventories $ 40,000
Land $ 20,000
Building $ 40,000
Equipment $ (20,000)
Liabilites $ 20,000
Goodwill $ 180,000
$ 280,000
n January 1, 2016, for $350,000 cash. Immediately after this acquisition the balance sheet information for the two companies

Elimination Entry
Capital Stock $ 200,000
Inventories $ 40,000
Land $ 20,000
Building $ 40,000
Liabilites $ 20,000
Goodwill $ 180,000
Retaired Earning $ 20,000
Investment In son $ 350,000
Equipment $ 20,000
$ 520,000 $ 370,000
Non Controlling Interst $ 150,000

POP BOOK SON BOOK ADJUSTEMENT


VALUE VALUE Debit Kredit
Assets
Cash $ 70,000 $ 40,000
Receivables-net $ 160,000 $ 60,000
Inventories $ 140,000 $ 60,000 $ 40,000
Land $ 200,000 $ 100,000 $ 20,000
Buildings-net $ 220,000 $ 140,000 $ 40,000
Equipment-net $ 160,000 $ 80,000 $ 20,000
Investment in son $ 350,000 $ 350,000
Goodwill $ 180,000
Total Assets $ 1,300,000 $ 480,000
Liabilites and stockholder's equity
Accounts payable $ 180,000 $ 160,000
Other liabilites $ 20,000 $ 100,000 $ 20,000
Capital stock, $20 par $ 1,000,000 $ 200,000 $ 200,000
Retained earnings $ 100,000 $ 20,000 $ 20,000
NonControlling Interst $ 150,000
Total equities $ 1,300,000 $ 480,000
Consolidated

$ 110,000
$ 220,000
$ 240,000
$ 320,000
$ 400,000
$ 220,000
$ -
$ 180,000
$ 1,690,000

$ 340,000
$ 100,000
$ 1,000,000
$ 100,000
$ 150,000
$ 1,690,000
On March 31, 2014, Tobias AG purchased 90 percent of interest in Mark AG for $8,100,000 cash. Mark AG had unrecorde
Mark AG on March AG had unrecorded patents on this date for $100,000. The balance sheet summary of Mark AG on M

BV FV
cash $ 1,000 $ 1,000 Cost of 90% Mark Ag
inventories $ 1,600 $ 2,000 Implied Value Mark Ag
land $ 3,000 $ 4,000 Book Value ($2,000+52,200)
buidings-net $ 2,800 $ 2,500 ECO BV
equipment-net $ 3,900 $ 4,000
current liabiliites $ 900 $ 900 Allocated To
notes payable $ 1,800 $ 2,000 inventories
bounds payable $ 2,400 $ 2,000 land
common stock, $10 par $ 2,000 Building
retained earnings $ 5,200 Equipment
notes payable
Purchase 90% $ 8,100 bounds payable
Unrecord Paten $ 100,000 Paten

Goodwill
8,100,000 cash. Mark AG had unrecorded patents on this date for $100,000. The balance sheet summary of
alance sheet summary of Mark AG on March 31, 2014, was as follows (in thousands):

0% Mark Ag $ 8,100 Eliminating Entries:


alue Mark Ag $ 9,000 Common Stock $ 2,000
ue ($2,000+52,200) $ 7,200 Retained earnings $ 5,200
$ 1,800 inventories $ 400
land $ 1,000
equipment $ 100
$ 400 bounds payable $ 400
$ 1,000 patens $ 100
$ (300) goodwill $ 300
$ 100 buildings
$ (200) notes payable
$ 400 investment in mark
$ 100 non controlling interest
$ 1,500 $ 9,500
$ 300
$ 1,800
$ 300
$ 200
$ 8,100
$ 900
$ 9,500

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