Pen book value of net assets

Assignment Help Financial Accounting
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

Questions Cloud

What amount should cupidity report as goodwill : On that date, FMV of Venality's PPE exceeded book value by $300,000. What amount should Cupidity report as goodwill?
Developing prototype database model for real company : Based on your learning experience in completing the use case ERD-Diagram and developing a prototype database model for a real company,
Prepare the income statement for the year ended : (1) Prepare the income statement for the year ended December 31. (2) Prepare the statement of retained earnings for the year ended December 31.
Calculate the bond price to the nearest whole number : On January 1, 2015, Linju Corp. issued $600,000 of 20-year, 11% bonds for ??, yielding a market rate of 12%. Interest is payable semi-annually on June 30
Pen book value of net assets : Juxtapose Corp. and Penultimate Corp. reported the following balance sheets at January 1, 2018.
Part of security monitoring system : You are a team of security consultants for a small company and the owner would like you to purchase cameras to install as part of a security monitoring system
Write about a company that you like to work in the future : You need to research a company that you like to work in the future and write about it - Write one paragraph about your company, why you chose it.
What is the equivalent annual cost : What is the Equivalent Annual Cost for each project? Should Solar or Recycle be selected?
Journal entries to record first subsequent cash transaction : Use the information to make adjusting entries as of December 31, 2019. Make journal entries to record the first subsequent cash transaction in 2020 for parts

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd