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On January 1, 2009, Porter Company purchased an 80...

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On January 1, 2009, Porter Company purchased an 80% interest in the capital stock of Salem Company for $850,000. The fair value of the noncontrolling interest was proportionate to the consideration paid by the controlling interest. At that time, Salem Company had capital stock of $550,000 and retained earnings of $80,000. Differences between the excess fair value over the book value of the identifiable assets of Salem Company were as follows: Equipment $130,000 Land 65,000 Inventory 40,000 The book values of all other assets and liabilities of Salem Company were equal to their fair values on January 1, 2009. The inventory was sold in 2009 and the equipment has a 5-year remaining life as of January 1, 2009. Required for the year ended December 31, 2011: 1. Prepare the analysis as of acquisition date including unamortized differential at 1/1/11. 2. Prepare the journal entries Porter recorded with respect to its investment in Porter for the year ended 12/31/11. 3. Calculate consolidated net income. 4. Prepare all necessary elimination entries for the year ended 2011. 5. Complete the consolidated workpapers for the year ended 12/31/11. Use formulas in all calculations.,Hello, I was wondering if my assignment would be available to me tomorrow (November 15, 2010) by 12 p.m. EST time? Thank You,Sounds great! Thank you,Hello, Would you happen to have a time frame when the assignment would be available? I would like to have a chance to review it. Thank You,Okay great. Thank you so much!,Hello, thank you for the solutions. I also attached a excel file to go along with this problem. It was the financial statements portion that needed to be done. Would you happen to have it? If not, I have attached it again. The yellow blanks already has inputted formulas set up. Thank You

 

Paper#3601 | Written in 18-Jul-2015

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