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Pen book value of net assets

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Reference no: EM132420368

Juxtapose Corp. and Penultimate Corp. reported the following balance sheets at January 1, 2018.

                                                                       Jux                             Pen

           Current assets                                   $30,000                      $15,000

           PPE                                                     55,000                       25,000

           Total assets                                        $85,000                      $40,000

 

           Current liabilities                               $20,000                      $10,000

           Long-term debt                                   20,000                         5,000

           Equity                                                 45,000                       25,000

           Total L+E                                          $85,000                      $40,000

On January 2, 2018 Jux issued $36,000 of stock and used the proceeds to purchase 90% of Pen's common stock. The excess of the purchase price over Pen's book value of net assets was allocated 60% to inventory and 40% to goodwill.

Required:

a. Compute Goodwill and NCI (Non-controlling interest)

b. Prepare the consolidated B/S.

Reference no: EM132420368

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