act 470 ct 3

Option #1: Consolidation at Date Acquisition, Ownership <100%, FMV>BV.

Assume that a parent company acquires a 70% interest in a subsidiary
for a purchase price of $1,078,000. The excess of total fair value of
controlling and noncontrolling interests over book value is assigned to;
a building (PPE net) that is worth $100,000 more than book value, an
unrecorded patent valued at $200,000 and goodwill valued at $300,000.
Goodwill is assigned proportionately to the controlling and
noncontrolling interests.

Submission Requirements:

Using the ACT470_Mod03-Option01.xlsx Excel spreadsheet in the Module 3 folder:

  • Prepare the consolidated balance sheet at the date of acquisition by
    placing the appropriate entries in their respective debit/credit column
  • Indicate, in the blank column cell to the left of the debit and credit column cells if the entry is an [E] or [A] entry.
  • Use Excel formulas to derive the Consolidated column amounts and totals.
  • Using the “Home” key in Excel, go to the “Styles” area and highlight the [E] and [A] entry cells in different shades.
  • Review the grading rubric following this assignment, to understand
    how you will be graded on this assignment. Reach out to your instructor
    if you have questions about the assignment.

Calculate Price

Price (USD)