Reference no: EM133091404

Question - On January 1, 20X5, Power Company purchases 80%$2,500,000 in cashA buildinglong-term liability of the outstanding shares of the Spencer Company for . On that date, Spencer Company had No Par Common Stock of $2,000,000 and Retained Earnings of $1,000,000. On January 1, 20X5, all of Spencer's identifiable assets and liabilities had fair values that were equal to their carrying values except for that had an estimated FV of $600,000 less that its carrying value; its remaining useful life was estimated to be 10 years; and

A with a FV of $500,000 less than its carrying value; the liability matures on December 31, 20X12.

The book value (BV) of Building for Power and Spencer at date of acquisition was $1,000,000 and $2,000,000 respectively.

The BV of Power'sWhat amount would Power Company report on its consolidated SFP at date of acquisition for Goodwill under the Partial Goodwill Approach? Common Shares just before the date of acquisition was $5,000,00

Required -

1. What is the implied value of Spencer at date of acquisition?

2. What amount would Power Company report on its consolidated SFP at date of acquisition for Buildings?

3. What amount would Power Company report on its consolidated SFP at date of acquisition for NCI under the Full Goodwill Approach?

4. What amount would Power Company report on its consolidated SFP at date of acquisition for Goodwill under the Partial Goodwill Approach?

5. What amount would Power Company report on its consolidated SFP at date of acquisition for Goodwill under the Full Goodwill Approach?

6. What amount would be reported as Investment in Spencer in Power's books at date of acquisition?

7. What amount would Power Company report on its consolidated SFP at date of acquisition for Common Shares?

8. What amount would Power Company report on its consolidated SFP at date of acquisition for NCI under the Partial Goodwill Approach?