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  • Prince Corp and Sprite Corp Reported The Following Balance Sheets

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    trilocksp Singh
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    Prince Corp purchased 90% of Sprite Corp's common stock for $36,000. Per the acquisition method, Prince consolidated Sprite's assets and liabilities onto its balance sheet. It allocated the excess purchase price over Sprite's book value 60% to inventory and 40% to goodwill. The consolidated balance sheet showed increased current and noncurrent assets, goodwill, and stockholders' equity for Prince along with a new non-controlling interest for the remaining 10% of Sprite owned by others.

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    Prince Corp purchased 90% of Sprite Corp's common stock for $36,000. Per the acquisition method, Prince consolidated Sprite's assets and liabilities onto its balance sheet. It allocated the excess purchase price over Sprite's book value 60% to inventory and 40% to goodwill. The consolidated balance sheet showed increased current and noncurrent assets, goodwill, and stockholders' equity for Prince along with a new non-controlling interest for the remaining 10% of Sprite owned by others.

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    18 views1 page

    Prince Corp and Sprite Corp Reported The Following Balance Sheets

    Uploaded by

    trilocksp Singh
    Prince Corp purchased 90% of Sprite Corp's common stock for $36,000. Per the acquisition method, Prince consolidated Sprite's assets and liabilities onto its balance sheet. It allocated the excess purchase price over Sprite's book value 60% to inventory and 40% to goodwill. The consolidated balance sheet showed increased current and noncurrent assets, goodwill, and stockholders' equity for Prince along with a new non-controlling interest for the remaining 10% of Sprite owned by others.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Prince Corp and Sprite Corp reported the following balance

    sheets
    Prince Corp and Sprite Corp reported the following balance sheets

    Prince Corp. and Sprite Corp. reported the following balance sheets at January 1, 2017:

    On January 2, 2017, Prince issued $36,000 of stock and used the proceeds to purchase 90% of
    Sprite's common stock. The excess of the purchase price over Sprite's book value of net assets
    was allocated 60% to inventory and 40% to goodwill.
    Required:
    Show the amounts that Prince will report on its January 2, 2017, consolidated balance sheet for
    the following items under (a) the acquisition method and (b) the purchase method.
    1. Current assets.
    2. Noncurrent assets.
    3. Goodwill.
    4. Current liabilities.
    5. Noncurrent liabilities.
    6. Stockholders' equity (controlling interest).
    7. Stockholders' equity (non-controlling or minority interest).

    Prince Corp and Sprite Corp reported the following balance sheets
    SOLUTION-- http://solutiondone.online/downloads/prince-corp-and-sprite-corp-reported-the-
    following-balance-sheets/

    Unlock answers here solutiondone.online

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