Questions based on consolidated balance sheeton december 31

Assignment Help Financial Accounting

Reference no: EM13356501

Questions based on consolidated balance sheet.

On December 31, 2008 Company P reported assets of $800 million and liabilities of $350 million. On January 1, 2009 it acquires Company S for $350 million cash. The book value of Company S's assets are $260 million and the fair value of its assets are $320 million (the difference in value is solely due to property, plant, and equipment with a remaining life of 10 years); the book value and fair value of Company S's liabilities are $120 million and $150 million, respectively. Company P reported income of $45 million for 2009 before considering the effects of consolidation. Company S reported income of $16 million for 2009.

a. Compute the total goodwill reported in P's consolidated balance sheet at 1/1/09.

b. Compute the total assets, liabilities, and stockholders' equity reported in P's consolidated balance sheet at 1/1/09?

c. Compute the total income reported in P's consolidated income statement for 2009.

d. If company P acquires 70% of Company S for $280 million, how much noncontrolling (minority) interest would it report in a consolidated balance sheet prepared on 1/1/09 and how much income would be attributed to the noncontrolling (minority) interest for 2009?

e. Explain why a company may purchase slightly less than 50% of another company.

Reference no: EM13356501

Questions Cloud

Multiple choices on defective products in productionpatrick : multiple choices on defective products in production.patrick corporation inadvertently produced 10000 defective

Calculation of overhead variancesoverhead variancesconsider : calculation of overhead variances.overhead variancesconsider the following data for the rivera companyfactory

Multiple choices on variance analysisthe following company : multiple choices on variance analysis.the following company information is availabledirect materials used for

Effect of different type of lease transaction in balance : effect of different type of lease transaction in balance sheet.on january 1 2009 the needy company signed a lease that

Questions based on consolidated balance sheeton december 31 : questions based on consolidated balance sheet.on december 31 2008 company p reported assets of 800 million and

The amount of joint cost allocated by physical measure : the amount of joint cost allocated by physical measure method.zenon chemical inc. processes pine rosin into three

Ending inventory calculation for each product amp as a : ending inventory calculation for each product amp as a whole.tanzy companys ending inventory includes the following

Computation of machine hour overhead rate and product : computation of machine hour overhead rate and product cost.cabigas company manufactures two products product c and

Computation of production cost with given datasea company : computation of production cost with given data.sea company reports the following information regarding its production

User Account

All Pages