Find values to be disclosed in final financial statements

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Reference no: EM1314276

Calculating Missing Values to be disclosed in Final Financial Statements.

Bon Air, Inc., acquired 70 percent (2,800 shares) of the outstanding voting stock of Creedmoor Corporation on January 1, 2004, for $250,000 cash Creedmoor's net assets on that date totaled $230,000, but this balance included three accounts having fair values that differed from their book values:

	Book Value	Fair Value
Land ................................................................................................	$30,000	$ 40,000
Equipment (14-year life) ............................................................	50,000	118,000
Liabilities (10-year life) ...............................................................	(70,000)	(50,000)

	Bon Air	Creedmoor
Revenues	$ (694,800)	$(250,000)
Operating expenses	630,000	180,000
Investment income	(44,200)	-0-
Net income	$ (109,000)	$ (70,000)
Retained earnings, 1/1/07	$ (760,000)	$(260,000)
Net income	(109,000)	(70,000)
Dividends paid	68,000	10,000
Retained earnings, 12/31/07	$ (801,000)	$(320,000)
Current assets	$ 72,000	$ 120,000
Investment in Creedmoor Corp	321,800	-0-
Land	241,000	50,000
Buildings (net)	289,000	200,000
Equipment (net)	165,200	40,000
Total assets	$ 1,089,000	$ 410,000
Liabilities	$ (180,000)	$ (50,000)
Common stock	(50,000)	(40,000)
Additional paid-in capital	(58,000)	-0-
Retained earnings, 12/31/07	(801,000)	(320,000)
Total liabilities and equities	$(1,089,000)	$(410,000)

Consolidated financial statements are being prepared on December 31, 2007. What balance should be reported for each of the following accounts?

Operating Expenses

No controlling Interest in Creedmoor's Net Income

Revenues

Retained Earnings, 1/1/07

Net Income

Dividends Paid

Land

Equipment

Liabilities

Common Stock

Retained Earnings, 12/31/07

No controlling Interest in Creedmoor, 12/31/07

Reference no: EM1314276

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