This exercise consists of three parts Part A On January 1

#3393
This exercise consists of three parts.Part A. On January 1, Year 1, Complete Company
acquired 60 percent of the outstanding shares of Partial Company by paying $1,200,000 in
cash. The fair value of Partial's identifiable assets and liabilities is $2,000,000 and $500,000,
respectively.Required:Determine the possible amounts at which Complete Company should
recognize goodwill from this business combination.Part B. Assume the same facts as in part A,
except Complete Company acquires 80 percent of Partial Company for
$1,100,000.Required:Determine the possible amounts at which Complete Company should
recognize goodwill from this business combination.Part C. Assume the same facts as in part A
and that Complete Company measured noncontrolling interest at the date of acquisition at the
proportionate share of fair value of Partial Company's net assets. Complete Company
determines that Partial Company is a separate cash-generating unit. At the end of Year 1,
Complete Company develops the following estimates for Partial Company:Fair value
………………………………… $1,900,000Costs to sell ……………………………… $ 20,000Present value
flows ………. $ 1,860,000Required:Determine the amount of impairment loss, if any, to be
recognized in the Year 2 consolidated income statement, and the amount at which Partial
Company's net assets, goodwill, and noncontrolling interest would be carried on the
consolidated balance sheet at the end of Year 2.View Solution:
This exercise consists of three parts Part A On January 1

ANSWER
http://paperinstant.com/downloads/this-exercise-consists-of-three-parts-part-a-on-january-1/

1/1
Powered by TCPDF (www.tcpdf.org)