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support Consolidation subsequent to date of acquisition--Equity method with noncontrolling interest and AAP Assume, on January 1, 2015, a parent company acquired a 90% interest in its subsidiary. The total fair value of the controlling and noncontrolling interest was $480,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. The parent assigned the excess to the following (A) assets: Original Original [A] Asset Amount Useful Life Property, plant and equipment 5 160.000 10 years Customer list 96.000 5years Good 224,000 indefinite $-430.000 90% of the Goodwill is allocated to the parent. The parent and the subsidiary report the following pre-consolidation financial statements at December 31, 2019 Parent Subsidiary Parent Subsidiary Income statement Balance sheet Sales 55,760.000 1520000 Assets Cost of goods sold 4.000.000 1960.000) Cash $ 400.000 580.000 Gross profit 1,760.000 560.000 Accounts recevable 752,000 200.000 Equity income 112320 Inventory 960.000 140,000 Operating expenses 11.120.000 (400.000) Etuity investment 931.600 Net income 752.320 160.000 Property, plant and equipment net 2.200.000 720.000 Statement of retained earnings 55.273.600 51.440.000 Benning retard earnings 1.401230 400.000 abilities and stockholderse culty Net income 752320 160.000 Accredite 300.000 3:20,000 Dividends 100.000 40.000 Long term abilities 1.600.000 00000 Ending retained earnings 51,993000 5520 000 Common stock 160.0CO 30.000 APC 720,000 120.000 Retained earrings 01650 520,000 $ 5.273.600 51.410.000 a. Disaggregate and document the activity for the 100% Acquisition Accounting Premium (AAPI, the controlling interest AAP and the noncontrolling interest AAP Unamort Unamort Unamort Unamort Unamart Unamort AAP 2015 AAP 2016 AAP 2017 MAP 2018 AAP 2019 AAP 100% AAP 01/15/15 Amort 12/31/15 Amort 12/31/16 Amort 12/31/17 Amort 12/31/18 Amort 12/31/19 DPE net $160.000 S 5 $ $ 5 5 $ S S 5 Customer list 96.000 Goodwill 224000 $430,000 $ $ $ 5 5 5 s $ $ Parent PDE 5 $ $ $ 5 $ 5 $ $ 5 $ Customer ist Goodwill 5 s 5 5 5 $ $ 5 5 5 Subsidiary in PPE.net 5 5 5 5 $ $ $ $ 5 $ 5 Customer list Goodw $ $ 5 5 5 $ $ $ 5 5 5 b. Calculate and organize the profits and losses on intercompany transactions and balances. (No intercompany transactions) c. Compute the pre-consolidation Equity Investment account beginning and ending balances starting with the stockholders equity of the subsidiary. Equity Investment account at 1/1/19 pa book value of subsidiarys net assets 5 Un amortized AAD Equity Investment account at 12/31/19 put book value of subsidiarys net assets Unamortized MAP d. Reconstruct the activity in the parent's pre-consolidation Equity Investment T-account for the year of consolidation Equity Investment e. Independently compute the owners' equity attributable to the noncontrolling interest beginning and ending balances starting with the owners' equity of the subsidiary. Noncontrolling interests at 1/1/19 niet book value of subsidiary's net assets s Unamortized ni AAP Noncontrolling interests at 12/31/19 no book value of subsidiary's net assets Unamortized ni AAP f. Independently calculate consolidated net income, controlling interest net income and noncontrolling interest net income Note:Use a negative sign with your answer to indicate a reduction to net income. Parent's stand-alone net income $ Subsidiary's stand-alone net income 100 AAP amortization Consolidated net income 5 Parent's stand-alone net income $ pe of subsidiary's stand-alone net income PAAP amortization Consolidated net income attributable to the controlling interest S note of subsidiary's stand-alone net income $ OH AAP amortization Consolidated net income attributable to the noncontrolling interest g. Complete the complete the consolidation worksheet. Note: Use negative signs with your answers in the Consolidated column when appropriate (Cost of goods sold, Operating expenses and Dividends). Consolidation Entries Parent Subsidiary Dr Cr Consolidated Income Statement: Sales $5.760,000 $1.520,000 $ Cost of Goods sold (4,000,000) (960,000) Gross profit 1.760,000 560.000 Income (loss) from subsidiary 112.320 [C Operating expenses (1.120.000) (400.000) [D] Net income $752.320 $160.000 Consolidated Ni atrib to NO C) Consolidated Ni attrib to a $ Statement of Ret Earnings: BOY retained earnings $1,401,280 $400,000 (E) 5 Net income 752.320 160.000 Dividends (160.000) (40.000) IC EOY retained earnings $1.993.600 $520,000 $ Balance Sheet: Cash $400.000 $80,000 S Accounts receivable 752.000 200,000 Inventory 960.000 440,000 Equity investment 921,600 IC LE) A) PPE, net 2.240.000 720,000 A [D] Customer List [D] Goodwill 55.273.500 $1,440,000 $ 322 $320,000 Current liabilities Long-term liabilities Common stock APIC Retained earnings Noncontrolling interest $800,000 1,600,000 160,000 720,000 1.993,600 400,000 80,000 (E) 120,000 (E) 520.000 [C] [E] [A] 55.273.600 $1,440,000 $ $ 5 Consolidation subsequent to date of acquisition-Equity method with noncontrolling interest and AAP Assume, on January 1, 2015. a parent company acquired a 9046 interest in its subsidiary. The total fair value of the controling and noncontrolling interest was $480,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. The parent assigned the excess to the following (A) assets: Original Original TAI Asset Amount Useful Life Property, plant and equipment $100.000 10 years Customer list 95.000 years 22.000 indefinite 5480.000 90% of the Goodwill is allocated to the parent. The parent and the subsidiary report the following pre-consolidation financial statements at December 31, 2019: Parent Subsidiary Parent Subsidiary Income statement Balance sheet 35.760.000 150.000 Assets Costo do 14.000.000 (60.000 $450,000 1000 Grosse 1,760.000 550,000 Accounts receivable 752.000 200.000 Equity income 90.000 Operating expenses 400,000 tauty investment Net neome 752.120 160.000 Property plant and 720.000 Statement of retained earnings 35281000 Beginning and caring 140120 100.000 abities and stockholders equity 160.000 Acres 160.00 0,000 Loncerte 120,000 | APIC Main Dividends 160,000 (40.000 Long-term bites 1 500.000 1000 Ending retained caring SO 5520.000 Common stock TBDO 1000 | APIC 720.000 120.000 Retained earning 1.993.500 2600 $5.273.600 1.400.000 a. Disaggregate and document the activity for the 100% Acquisition Accounting Premium (AAP), the controlling interest AAP and the noncontroling interest AP. Unamort Unament Unament Unament Unament AAP 2015 AAP AAP 2017 AAP 2018 AAP 2019 AAP 100 AAP 01/15/15 Amort 12/31/15 Amort 12/31/16 Amort 12/31/17 A 12/31/18 Amort PPE net $ 160,000 05 Os O 0 000 0 0 . 0 0 Good 0 0 . 0 0 0 40.000 D 0 O OS D O . PPL net OS O OS D OB 0 OS 0 08 0 0 0 0 0 0 0 0 0 0 0 0 05 0 0 0 0 5 OS 0 08 OS OS 08 05 OS OS OS 05 Subsidiary in PPER Customers Good OS 0 0 0 0 0 0 0 0 0 0 D 0 D 0 D D 0 b. Calculate and organize the profits and losses on intercompany transactions and balances No intercompany transactions) c. Compute the pre-consolidation Equity Investment account beginning and ending balances starting with the stockholders' equity of the subsidiary. Equity investment account at 1/1/19 pbook value of subsidiary's net assets Unamortired AAP 0 0 Equity Investment account at 12/31/19 pbook value of subsidiary's net assets Unamortired AAP 0 0 0 d. Reconstruct the activity in the parent's pre-consolidation Equity Investment T-account for the year of consolidation Equity Investment 0 0 0 0 0 e Independently compute the owners' equity attributable to the no controlling interest beginning and ending balances starting with the owners' equity of the subsidiary NonControngnterests a 1/1/19 book of days uma AP Non centre interests at 12/3119 nok v oblast Independently calculate consolidated net income, controlling interest net income and noncontrolling interest income Note:Use a negative with your answer to indicate a reduction to net income brysundret income 5 0 Consolidated net income of days and one income 5 $ no obdary's standalone net income non MP amorination Consommable poroms U Megan & Complete the complete the consolidation worksheet Note: Use negative signs with your answers in the Consolidated column when appropriate (Cost of goods sold, Operating expenses and Dividends). Consolidation Entries Parent Subsidiary Consolidated Income Statement 35.760.000 51.520.000 $ 0 Cost of Goods sold H.000.000 1360.000 0 Gross pret 1,750.000 560.000 Income strom subsidiary 112320 0 Operating expenses 11,120,000 0 0 Net Income $752.320 $160,000 0 Consolidated Nitro NC 0 0 Consolidated to 0 Statement of Retaines BOY and $400.000 TDDO 0 Dividende 1160.0001 00 FOY nederings 51.933.600 5520.000 5 0 Balance Sheet 580.000 Accable 200.000 0 960,000 0 Equity investment 521.000 OC O OTAL 240.000 720,000 A O PPL net Customer ist Goodwill OD O DI 0 0 TA 0 D 0 $5.273.600 51.445.000 $320.000 500 000 600.000 160.000 0.000 720,000 120.000 Current liabilities Long term bites Commons APIC Retained earning Noncontrolling interest 0 0 D 010 0 OIA 352.00 51.440.000 OS 0 support Consolidation subsequent to date of acquisition--Equity method with noncontrolling interest and AAP Assume, on January 1, 2015, a parent company acquired a 90% interest in its subsidiary. The total fair value of the controlling and noncontrolling interest was $480,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. The parent assigned the excess to the following (A) assets: Original Original [A] Asset Amount Useful Life Property, plant and equipment 5 160.000 10 years Customer list 96.000 5years Good 224,000 indefinite $-430.000 90% of the Goodwill is allocated to the parent. The parent and the subsidiary report the following pre-consolidation financial statements at December 31, 2019 Parent Subsidiary Parent Subsidiary Income statement Balance sheet Sales 55,760.000 1520000 Assets Cost of goods sold 4.000.000 1960.000) Cash $ 400.000 580.000 Gross profit 1,760.000 560.000 Accounts recevable 752,000 200.000 Equity income 112320 Inventory 960.000 140,000 Operating expenses 11.120.000 (400.000) Etuity investment 931.600 Net income 752.320 160.000 Property, plant and equipment net 2.200.000 720.000 Statement of retained earnings 55.273.600 51.440.000 Benning retard earnings 1.401230 400.000 abilities and stockholderse culty Net income 752320 160.000 Accredite 300.000 3:20,000 Dividends 100.000 40.000 Long term abilities 1.600.000 00000 Ending retained earnings 51,993000 5520 000 Common stock 160.0CO 30.000 APC 720,000 120.000 Retained earrings 01650 520,000 $ 5.273.600 51.410.000 a. Disaggregate and document the activity for the 100% Acquisition Accounting Premium (AAPI, the controlling interest AAP and the noncontrolling interest AAP Unamort Unamort Unamort Unamort Unamart Unamort AAP 2015 AAP 2016 AAP 2017 MAP 2018 AAP 2019 AAP 100% AAP 01/15/15 Amort 12/31/15 Amort 12/31/16 Amort 12/31/17 Amort 12/31/18 Amort 12/31/19 DPE net $160.000 S 5 $ $ 5 5 $ S S 5 Customer list 96.000 Goodwill 224000 $430,000 $ $ $ 5 5 5 s $ $ Parent PDE 5 $ $ $ 5 $ 5 $ $ 5 $ Customer ist Goodwill 5 s 5 5 5 $ $ 5 5 5 Subsidiary in PPE.net 5 5 5 5 $ $ $ $ 5 $ 5 Customer list Goodw $ $ 5 5 5 $ $ $ 5 5 5 b. Calculate and organize the profits and losses on intercompany transactions and balances. (No intercompany transactions) c. Compute the pre-consolidation Equity Investment account beginning and ending balances starting with the stockholders equity of the subsidiary. Equity Investment account at 1/1/19 pa book value of subsidiarys net assets 5 Un amortized AAD Equity Investment account at 12/31/19 put book value of subsidiarys net assets Unamortized MAP d. Reconstruct the activity in the parent's pre-consolidation Equity Investment T-account for the year of consolidation Equity Investment e. Independently compute the owners' equity attributable to the noncontrolling interest beginning and ending balances starting with the owners' equity of the subsidiary. Noncontrolling interests at 1/1/19 niet book value of subsidiary's net assets s Unamortized ni AAP Noncontrolling interests at 12/31/19 no book value of subsidiary's net assets Unamortized ni AAP f. Independently calculate consolidated net income, controlling interest net income and noncontrolling interest net income Note:Use a negative sign with your answer to indicate a reduction to net income. Parent's stand-alone net income $ Subsidiary's stand-alone net income 100 AAP amortization Consolidated net income 5 Parent's stand-alone net income $ pe of subsidiary's stand-alone net income PAAP amortization Consolidated net income attributable to the controlling interest S note of subsidiary's stand-alone net income $ OH AAP amortization Consolidated net income attributable to the noncontrolling interest g. Complete the complete the consolidation worksheet. Note: Use negative signs with your answers in the Consolidated column when appropriate (Cost of goods sold, Operating expenses and Dividends). Consolidation Entries Parent Subsidiary Dr Cr Consolidated Income Statement: Sales $5.760,000 $1.520,000 $ Cost of Goods sold (4,000,000) (960,000) Gross profit 1.760,000 560.000 Income (loss) from subsidiary 112.320 [C Operating expenses (1.120.000) (400.000) [D] Net income $752.320 $160.000 Consolidated Ni atrib to NO C) Consolidated Ni attrib to a $ Statement of Ret Earnings: BOY retained earnings $1,401,280 $400,000 (E) 5 Net income 752.320 160.000 Dividends (160.000) (40.000) IC EOY retained earnings $1.993.600 $520,000 $ Balance Sheet: Cash $400.000 $80,000 S Accounts receivable 752.000 200,000 Inventory 960.000 440,000 Equity investment 921,600 IC LE) A) PPE, net 2.240.000 720,000 A [D] Customer List [D] Goodwill 55.273.500 $1,440,000 $ 322 $320,000 Current liabilities Long-term liabilities Common stock APIC Retained earnings Noncontrolling interest $800,000 1,600,000 160,000 720,000 1.993,600 400,000 80,000 (E) 120,000 (E) 520.000 [C] [E] [A] 55.273.600 $1,440,000 $ $ 5 Consolidation subsequent to date of acquisition-Equity method with noncontrolling interest and AAP Assume, on January 1, 2015. a parent company acquired a 9046 interest in its subsidiary. The total fair value of the controling and noncontrolling interest was $480,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. The parent assigned the excess to the following (A) assets: Original Original TAI Asset Amount Useful Life Property, plant and equipment $100.000 10 years Customer list 95.000 years 22.000 indefinite 5480.000 90% of the Goodwill is allocated to the parent. The parent and the subsidiary report the following pre-consolidation financial statements at December 31, 2019: Parent Subsidiary Parent Subsidiary Income statement Balance sheet 35.760.000 150.000 Assets Costo do 14.000.000 (60.000 $450,000 1000 Grosse 1,760.000 550,000 Accounts receivable 752.000 200.000 Equity income 90.000 Operating expenses 400,000 tauty investment Net neome 752.120 160.000 Property plant and 720.000 Statement of retained earnings 35281000 Beginning and caring 140120 100.000 abities and stockholders equity 160.000 Acres 160.00 0,000 Loncerte 120,000 | APIC Main Dividends 160,000 (40.000 Long-term bites 1 500.000 1000 Ending retained caring SO 5520.000 Common stock TBDO 1000 | APIC 720.000 120.000 Retained earning 1.993.500 2600 $5.273.600 1.400.000 a. Disaggregate and document the activity for the 100% Acquisition Accounting Premium (AAP), the controlling interest AAP and the noncontroling interest AP. Unamort Unament Unament Unament Unament AAP 2015 AAP AAP 2017 AAP 2018 AAP 2019 AAP 100 AAP 01/15/15 Amort 12/31/15 Amort 12/31/16 Amort 12/31/17 A 12/31/18 Amort PPE net $ 160,000 05 Os O 0 000 0 0 . 0 0 Good 0 0 . 0 0 0 40.000 D 0 O OS D O . PPL net OS O OS D OB 0 OS 0 08 0 0 0 0 0 0 0 0 0 0 0 0 05 0 0 0 0 5 OS 0 08 OS OS 08 05 OS OS OS 05 Subsidiary in PPER Customers Good OS 0 0 0 0 0 0 0 0 0 0 D 0 D 0 D D 0 b. Calculate and organize the profits and losses on intercompany transactions and balances No intercompany transactions) c. Compute the pre-consolidation Equity Investment account beginning and ending balances starting with the stockholders' equity of the subsidiary. Equity investment account at 1/1/19 pbook value of subsidiary's net assets Unamortired AAP 0 0 Equity Investment account at 12/31/19 pbook value of subsidiary's net assets Unamortired AAP 0 0 0 d. Reconstruct the activity in the parent's pre-consolidation Equity Investment T-account for the year of consolidation Equity Investment 0 0 0 0 0 e Independently compute the owners' equity attributable to the no controlling interest beginning and ending balances starting with the owners' equity of the subsidiary NonControngnterests a 1/1/19 book of days uma AP Non centre interests at 12/3119 nok v oblast Independently calculate consolidated net income, controlling interest net income and noncontrolling interest income Note:Use a negative with your answer to indicate a reduction to net income brysundret income 5 0 Consolidated net income of days and one income 5 $ no obdary's standalone net income non MP amorination Consommable poroms U Megan & Complete the complete the consolidation worksheet Note: Use negative signs with your answers in the Consolidated column when appropriate (Cost of goods sold, Operating expenses and Dividends). Consolidation Entries Parent Subsidiary Consolidated Income Statement 35.760.000 51.520.000 $ 0 Cost of Goods sold H.000.000 1360.000 0 Gross pret 1,750.000 560.000 Income strom subsidiary 112320 0 Operating expenses 11,120,000 0 0 Net Income $752.320 $160,000 0 Consolidated Nitro NC 0 0 Consolidated to 0 Statement of Retaines BOY and $400.000 TDDO 0 Dividende 1160.0001 00 FOY nederings 51.933.600 5520.000 5 0 Balance Sheet 580.000 Accable 200.000 0 960,000 0 Equity investment 521.000 OC O OTAL 240.000 720,000 A O PPL net Customer ist Goodwill OD O DI 0 0 TA 0 D 0 $5.273.600 51.445.000 $320.000 500 000 600.000 160.000 0.000 720,000 120.000 Current liabilities Long term bites Commons APIC Retained earning Noncontrolling interest 0 0 D 010 0 OIA 352.00 51.440.000 OS 0

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