Reference no: EM13503945
Parker, Inc., acquires 70 percent of Sawyer Company for $420,000. The remaining 30 percentof Sawyer's outstanding shares continue to trade at a collective value of $174,000. On theacquisition date, Sawyer has the following accounts:
Book Value Fair Value
Current assets . . . . . . . . . . . . . . . . . . . . . . . . . $ 210,000 $ 210,000
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170,000 180,000
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000 330,000
Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (280,000) (280,000)
The buildings have a 10-year life. In addition, Sawyer holds a patent worth $140,000 that has afive-year life but is not recorded on its financial records. At the end of the year, the two companiesreport the following balances:
Parker Sawyer
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . .. $(900,000) $(600,000)
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 400,000
a. Assume that the acquisition took place on January 1. What figures would appear in a consolidated income statement for this year?
b. Assume that the acquisition took place on April 1. Sawyer's revenues and expensesoccurred uniformly throughout the year. What amounts would appear in a consolidatedincome statement for this year?
|
Assume the roles of brent and den
: The request should specify all the details of Brent's and Den's plan that will motivate the bank to grant the loan. Include a budgeted income statement for the first six months of the copy centre's operation.
|
|
How would consolidated net income be allocated
: What is consolidated net income for Placid Lake and its subsidiary and how would consolidated net income be allocated tothe controlling and non-controlling interest?
|
|
Find the buoyant force that acts on the submerged object
: A beaker is filled to the brim with water. A solid object of mass 3.00 kg is lowered into the beaker so the object is fully submerged in the water, find the buoyant force that acts on the submerged object
|
|
Money management
: Money Management
|
|
What figures would appear in a consolidated income statement
: What figures would appear in a consolidated income statement for this year and what amounts would appear in a consolidated income statement
|
|
What is the heat lost by the sample of tin
: An unknown mass of tin is heated to a temperature of 218 C. It is placed into 200 g of water which is in a 100 g copper cup initially at 10 C. What is the heat lost by the sample of tin
|
|
Human resource management review
: Instructions: Please answer each question with at least 400-1,000 words. Also, cite at least 2 scholarly journal articles from Human Resource Management Journal, Human Resource Management Review, Academy of Management Executive, Journal ..
|
|
What is the vacationers average density
: A vacationer floats lazily in the ocean with 95% of his body below the surface. The density of the ocean water is 1025 kg/m3. What is the vacationer's average density
|
|
Find the force exerted on the earth by the moon
: During a lunar eclipse, the moon, earth, and sun all lie on the same line, with the Earth between the Moon and the sun. Calculate the force exerted on the Earth by the moon
|