Prepare the january 1 2010 workpaper entries to eliminate

Reference no: EM13566200

Phillips Company purchased a 90% interest in Standards Corporation for $2,340,000 on January 1, 2010. Standards Corporation had $1,650,000 of common stock and $1,050,000 of retained earnings on that date.

The following values were determined for Standards Corporation on the date of purchase:

Book Value Fair Value

Inventory $240,000 $300,000

Land 2,400,000 2,700,000

Equipment 1,620,000 1,800,000

Required:

A.Prepare a computation and allocation schedule for the difference between the implied and book value in the consolidated statements workpaper.

B.Prepare the January 1, 2010, workpaper entries to eliminate the investment account and allocate the difference between implied and book value.

Reference no: EM13566200

Questions Cloud

Assuming that the market price of the firms stock is 95 : d. butler inc. needs to raise 14 million. assuming that the market price of the firms stock is 95 and flotation costs

P corporation acquired 80 of s corporation on january 1 : p corporation acquired 80 of s corporation on january 1 2011 for 240000 cash when ss stockholders equity consisted of

Assume that the average cost per case drops to 90 due to : total cost 100000 total volume 1000 average cost 100 payer volumes medicare payment rate 95 400 medicaid payment rate

I would like to finish my research it is about midway : i would like to finish my research. it is about midway island of garbage. i just done the research proposal and i want

Prepare the january 1 2010 workpaper entries to eliminate : phillips company purchased a 90 interest in standards corporation for 2340000 on january 1 2010. standards corporation

The hospital staff bills the patient 5000 and records 2000 : total cost 100000 total volume 1000 average cost 100 payer volumes medicare payment rate 95 400 medicaid payment rate

Describe and compare the three 3 most important factors : describe and compare the three 3 most important factors that affect the forecasting of interest

Thurman munster the owner of adams family rvs is : thurman munster the owner of adams family rvs is considering the addition of a service center his lot. the building and

What are the mirrs advantages and disadvantages vis-a-vis : what are the mirrs advantages and disadvantages vis-a?-vis the

User Account

All Pages