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Stonehill BUS 434 Quiz Chapter 5

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Question;ADVANCED ACCOUNTINGQUIZ CHAPTER 5, SPRING 2014Finandia Corporation acquired 70% of Prosegur Corporation?s common stock on December 31, 2012. Balance sheet data for the two companies immediately following the acquisition follow: FINANDIA PROSEGURCash $44,000 $30,000Accounts Receivable 110,000 45,000Inventory 130,000 70,000Land 80,000 25,000Buildings & Equipment 500,000 400,000Less: Acc. Depreciation (223,000) (165,000)Investment in Prosegur 150,500 TOTAL ASSETS $791,500 $405,000Accounts Payable $61,500 $28,000Taxes Payable 95,000 37,000Bonds Payable 280,000 200,000Common Stock 150,000 50,000Retained Earnings 205,000 90,000TOTAL LIABILITIES & SE $791,500 $405,000At the date of the business combination, the book values of Prosegur?s net assets and liabilities approximated fair values except for inventory, which had a fair value of $85,000, and land, which had a fair value of $45,000. The fair value of the noncontrolling interest was $64,500 on December 31, 2012.1. Based on the preceding information, what amount of inventory will be included in the consolidated balance sheet immediately following the acquisition?a) $179,000.b) $200,000.c) $210,500.d) $215,000.2. Based on the preceding information, what amount of goodwill will be included in the consolidated balance sheet immediately following the acquisition?a) $0.b) $28,000.c) $40,000.d) $52,0003. Based on the preceding information, what amount of total assets will be included in the consolidated balance sheet immediately following the acquisition?a) $1,081,000.b) $1,121,000.c) $1,196,500.d) $1,231,500.4. Based on the preceding information, what amount of total liabilities will be included in the consolidated balance sheet immediately following the acquisition?a) $265,000.b) $436,500.c) $622,000.d) $701,500.5. Based on the preceding information, what amount of noncontrolling interest will be included in the consolidated balance sheet immediately following the acquisition?a) $42,000.b) $52,500.c) $60,900.d) $64,500.6. Based on the preceding information, what amount of consolidated retained earnings will be included in the consolidated balance sheet immediately following the acquisition?a) $295,000b) $268,000c) $232,000d) $205,0007. Based on the preceding information, what amount of total stockholders? equity will be included in the consolidated balance sheet immediately following the acquisition?a) $355,000b) $397,000c) $419,500d) $495,000Item Finandia Prosegur Eliminations Consolidated DR CR Cash $44,000 $30,000 $74,000Acc. Receivable 110,000 45,000 155,000Inventory 130,000 70,000 15,000 215,000Land 80,000 25,000 20,000 125,000Buildings & Eq. 500,000 400,000 900,000(Ac. Depreciation) (223,000) (165,000) (388,000)Investment in Prosegur 150,500 98,00052,500 0Goodwill - 40,000 40,000Total Assets $791,500 $405,000 $75,000 $150,500 $1,121,000Acc. Payable $61,500 $28,000 89,500Taxes Payable 95,000 37,000 132,000Bonds Payable 280,000 200,000 480,000Common Stock 150,000 50,000 50,000 150,000R.E. 205,000 90,000 90,000 205,000NCI in Net Assets of Prosegur - 42,00022,500 64,500Total Liab. & SE $791,500 $405,000 $140,000 $64,500 $1,121,0001) Amount of Inventory in the Consolidated Balance Sheet:2) Amount of Goodwill in the Consolidated Balance Sheet:3) Amount of Total Assets in the Consolidated Balance Sheet:4) Amount of Total Liabilities in the Consolidated Balance Sheet:5) Amount of NCI in the Consolidated Balance Sheet:6) Amount of RE in the Consolidated Balance Sheet7) Amount of SE in the Consolidated Balance Sheet:8) At December 31, 2012, Portil Inc. owned 90% of Antilla Corporation, a consolidated subsidiary, and 20% of Moral Corporation, an investee in which Portil cannot exercise significant influence.On the same date, Portil had receivables of $300,000 from Antilla and $200,000 from Moral. In its December 31, 2012, consolidated balance sheet, Grey should report accounts receivable from its affiliates of:a) $500,000.b) $340,000.c) $230,000.d) $200,000.On January 1st, 2013, Desigual Corporation acquired 80% of Arcos Corporation?s $10 par common stock for $956,000. On this date, the fair value of the noncontrolling interest was $239,000, and the book value of Arcos?s net assets was $1,000,000.The fair values of Arcos?s identifiable assets and liabilities were the same as their book values except for buildings (net) with a remaining life of 20 years, which were $100,000 in excess of the carrying amount.For the year ended December 31, 2013, Arcos had net income of $190,000 and paid cash dividends totaling $125,000.9) In the January 1st, 2013, consolidated balance sheet, the amount of goodwill reported should be:a) $0.b) $76,000.c) $95,000.d) $156,00010) In the December 31st, 2013, consolidated balance sheet, the amount of noncontrolling interest reported should be:a) $200,000.b) $239,000.c) $251,000.d) $252,000.

 

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