70.2K

Verified Solution

Link Copied!

Please help me answer this

CoursHeroTranscribedText: Purchase Corporation purchased 60 percent of Steal Company ownership on January 1, 20x7, for $286,500. Steal reported the following net income and dividend payments: Ye'ar- Net 1mm; [amend-s Paid 283'? $54,6W $34,880 28KB 64 , m 44 , 860 2839 3 9 , m 19 , 806 On January 1, 20X?, Steal had $259,000 of $10 par value common stock outstanding and retained earnings of $159,000, and the fair value of the noncontrolling interest was $191,000. Steal held land with a book value of$31,500 and a market value of $39,000 and equipment with a book value of $331,000 and a market value of $371,000 at the date of combination. The remainder of the differential at acquisition was attributable to an increase in the value of patents, which had a remaining useful life of 10 years. All depreciable assets held by Steal at the date ofacquisition had a remaining economic life of eight years. Required: a. Compute the increase in the fair value of patents held by Steal. _:| b. Prepare the consolidation entries needed at January 1, 20x7, to prepare a consolidated balance sheet. {If no entry is required for o tronsoctiom'event, select "Nojournol entry required" in the rst account eid.) view transaction list Consolidation Worksheet Entries Record the basic consolidation entry. Note: Enter debits before credits. Record entry.r Clear e ntrv v iew consolidation entries b. Prepare the consolidation entries needed at January 1, 20x7, to prepare a consolidated balance sheet. {If no entry is required for o tronsoctionIevent, select "Nojournol entry required" in the rst account eld.)

Answer & Explanation Solved by verified expert

See Answer