On Jan 1, 2012 Trenton Co. reported the following financial data.
Receivables $10,000
Inventory 55,000
Buildings ( Useful life 10 years) 90,000
Equipment (net) 45,000
Current liabilities 15,000
Long Term Liabilities 25,000
Common Stock 70,000
Retained Earnings 90,000
On Jan 1, 2012, New York Co. paid $250,000 cash for all assets and liabilities of Trenton Co. Trenton reported income of $ 50,000 while paying dividends of $ 4,000 in 2012 and reported income of $80,000 while paying dividend of $ 6,ooo in 2013.
New York estimated the fair values of Trenton assets and liabilities as given below.
1. Building was undervalued by 25,000
2. There is a customer list worth $15,000 with a useful life of 5 years not shown on the balance sheet of Trenton.
3. It has research and development activity in progress with an appraised fair value of $30,000 and useful life of 10 years.
4. The fair values of all other assets were same as their book values.
New York Co. uses the Initial Value method for this investment. Prepare Consolidation Worksheet entries for Dec 31, 2012 and Dec 31,2013.
0 коммент.:
Отправить комментарий