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Trial Balance Parent Subsidiar Elimination DE Cons I/S NCI REP Con B/S Curr Assts 10.000 230,000 Invest in Sub 316.000 Building 380,000 Acc Dep B (106,000) 200.000 (20,000) Goodwill Acct Pay 0 (60.000) 0 (40.000) Bond Pay (100,000) Prom/Disc Com Stk (200,000) PIC (100.000) R/E-S R/EP (200.000) (90.000) (10,000) (150,000) Sales (150.000) (100,000) COGS 55.000 40,000 Do th Oper Exp 5.000 50.000 10,000 25.000 Sub Inc (20.000) Diy 20.000 5.000 NCI On 1-1-2015 Parent BUYS an 80% interest in SUB for $300,000...on that date the SUB's P/P/E is understated by $50,000 with a 5 year remaining life and Liabilities are overstated by $20,000 with 4 years remaining life Determination & Distribution of Excess Schedule: 100% Parent % 8096 NCI 2096 Price $300,000 Book Value: Com Stk PIC PIC R/E $90,000 $10,000 $150,000 Total BV $250,000 EXCESS FMV Ad) P/P/E (Inc) ET Trial Balance Parent Subsidiar Elimination DE Cons I/S NCI REP Con B/S Curr Assts 10.000 230,000 Invest in Sub 316.000 Building 380,000 Acc Dep B (106,000) 200.000 (20,000) Goodwill Acct Pay 0 (60.000) 0 (40.000) Bond Pay (100,000) Prom/Disc Com Stk (200,000) PIC (100.000) R/E-S R/EP (200.000) (90.000) (10,000) (150,000) Sales (150.000) (100,000) COGS 55.000 40,000 Do th Oper Exp 5.000 50.000 10,000 25.000 Sub Inc (20.000) Diy 20.000 5.000 NCI On 1-1-2015 Parent BUYS an 80% interest in SUB for $300,000...on that date the SUB's P/P/E is understated by $50,000 with a 5 year remaining life and Liabilities are overstated by $20,000 with 4 years remaining life Determination & Distribution of Excess Schedule: 100% Parent % 8096 NCI 2096 Price $300,000 Book Value: Com Stk PIC PIC R/E $90,000 $10,000 $150,000 Total BV $250,000 EXCESS FMV Ad) P/P/E (Inc) ET

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