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Consolidated Balance Sheet Analysis

The document provides instructions to reconstruct a schedule assigning fair value and book value for a consolidation. It states that the non-controlling interest of $260 (fair value) plus Pam's investment at fair value of $1,040 equals the total fair value of $1,300. Pam's interest is therefore 80% and the controlling interest is 20%. The total fair value is $1,300, the book value of Sun is $1,040, so the excess fair value over book value is $260. This $260 excess is allocated to plant assets-net of $40 and goodwill of $220.

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510 views4 pages

Consolidated Balance Sheet Analysis

The document provides instructions to reconstruct a schedule assigning fair value and book value for a consolidation. It states that the non-controlling interest of $260 (fair value) plus Pam's investment at fair value of $1,040 equals the total fair value of $1,300. Pam's interest is therefore 80% and the controlling interest is 20%. The total fair value is $1,300, the book value of Sun is $1,040, so the excess fair value over book value is $260. This $260 excess is allocated to plant assets-net of $40 and goodwill of $220.

Uploaded by

Putri anjjarwati
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

P3-4

Given separate and consolidated balance sheets, reconstruct the schedule to assign the fair value/book value differenti

Non controlling interest of $260 (fair value) plus $1.040 (fair value of Pam's Investment) equals total fair value of $1
Therefore, Pam's interest is 80% ($1.040/$1.300) and controlling interest is 20% ($260/$1.300)

Total fair value $ 1,300


Book value of Sun $ (1,040)
Excess fair value over book value $ 260

Excess Allocated to
Fair value - Book value
Plants assets-net $ 840 $ 800 $ 40
Goodwill $ 220
Total $ 260
air value/book value differential

) equals total fair value of $1.300.


$1.300)
P3-5
Prepare a consolidated balance sheet one year after acquisition

Separate Balance Sheet Adjustment and Eliminations


(In thousands) Mignonne Petite D C
Assets
Cash $ 104 $ 70
Receivable-net $ 300 $ 250
Inventories $ 900 $ 850
Land $ 500 $ 300
Equipment-net $ 1,500 $ 1,200 $ 236
Investment in Petite $ 2,786 $ - $ 2,786
$ 6,090 $ 2,670
Equities
Account payable $ 500 $ 120
Common stock, $10 par $ 4,000 $ 2,000 $ 2,000
Retained earnings $ 1,590 $ 550 $ 550
$ 6,090 $ 2,670
Consolidated Balance Sheet :
Mignonne and Subsidiary

$ 174
$ 550
$ 1,750
$ 800
$ 2,936
$ -
$ 6,210

$ 620
$ 4,000
$ 1,590
$ 6,210

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