70.2K

Verified Solution

Link Copied!

E5-4 Computation of Consolidated Balances LO 5-2 Statue Corporation's balance sheet at January 1, 20X7, reflected the following balances: Assets Cash & Receivables Inventory Land Buildings Iquipment (bet) $ 82,000 137.000 71,000 489,000 Liabilities & Stockholders' Equity Accounts Payable Incone Taxes Payable Donds Payable Common Stock retained Earnings Total Liabilities Stockholders' Equity $ 27.000 48,000 268.000 243,000 193,000 $799,000 Total Assets 5779,000 Prize Corporation entered into an active acquisition program and quired 80 percent of Statue's common stock on January 2, 20x7. for $456,000. The folr value of the noncontrolling interest at that date was determined to be $114,000. A careful review of the fair value of Statue's assets and liabilities indicated the following: Book Value Fair Value Inventory $137,000 $157,000 Land 71.000 61.000 Boldinga . Equipment (net) 489,000 563,000 Goodwill is assigned proportionately to Prize and the noncontroling shareholders. Required: Compute the appropriate amount related to Statue to be included in the consolidated balance sheet immediately following the acquisition for each of the following items. ng shareholders Required: Compute the appropriate amount related to Statue to be included in the consolidated balance sheet immediately following the acquisition for each of the following items Amounts Inventory b. Land Buildings and equipment ne Goodwill Investment in State Corporation Noncontrolling interest

Answer & Explanation Solved by verified expert

See Answer