Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2019, abc co. acquired 80% interest

On January 1, 2019, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000...

90.2K

Verified Solution

Question

Accounting

On January 1, 2019, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of 15 per share. On this date, XYZ's total equity was 74,000. The investment in subsidiary is measured at cost. XYZ's assets and liabilities approximate their fair values on January 1, 2019 except for the following: XYZ, Inc. Carrying amounts Fair values Fair value adjustments Inventory 23,000 31,000 8,000 Equipment (4 yrs. remaining life) 40,000 48,000 8,000 Total 63,000 79,000 16,000 There were no intercompany transactions during 2019. However, it was determined that goodwill is impaired by 1,000. How much is the goodwill attributable to NCI as of December 31, 2019?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students