Question;Universal acquired 60 percent ownership of Omnicare Company on January 1, 2014, for $193,000. At that date, the fair value of the noncontrolling interest was $63,250. The trial balance for the two companies on December 31, 2013, included the following amounts:Additional Information:1. On January 1, 2013, Omnicare reported net assets with a book value of $170,000 and a fair value of $211,250.2. Omnicare depreciable assets have an estimated economic life of 10 years on the date of the combination. The difference between fair value and book value of Omnicare?s net assets is related entirely to buildings and equipment.3. Universal used the equity method in accounting for its investments in Omnicare.4. Detailed analysis of receivables and payables showed that Omnicare owed Universal $20,000 on December 31, 2013.Required:a. Give all journal entries recorded by Universal with regard to its investments in Omnicare during 2013.b. Give all elimination entries needed to prepare a full set of consolidated financial statements for 2013.
Paper#39822 | Written in 18-Jul-2015Price : $22