lOMoARc PSD|4996518

RAYHAN DEWANGGA SAPUTRA

041911535026

TUGAS AKL TM 4

E4-2

Perhitungan
Purchase price 80% interest acquired 10.000.000 controlling non control
80% 20%

implied fair value of THEO AB 12.500.000

Book value THEO AB net assets 10.000.000
Goodwill 12.500.000

Non controlling interest share 20% of THEO 300.000

AB net income
Beg. Non control interest: 20% of beginning 2.500.000
implied fair value of THEO AB

LIAM AB AND SUBSIDIARY CONSOLIDATED WORKPAPER FOR THE YEAR ENDED

DECEMBER 31, 2014 (IN THOUSANDS)
Adjusment &
Eleminations

Liam Theo

AB Debit AB Statement
Income Statement
Sales $67.000Consolid
$30.500 $97.500
Income from Theo AB 1.200 ated - 1.200 0
Cost of sales -42.000 -25.000 -67.000
Expenses -21.900 -4.000 -25.900
Non-controlling interest share 300 -300
Controlling share of net income $4.300 $1.500 $4.300

Retained Earnings Statement

Retained earnings LIAM AB 11.600 11.600
Retained earnings THEO AB 8.000 8.000 0
Controlling share of net income 4.300 1.500 4.300
Dividends -3.000 -500 400
100 -3.000
Retained earnings December 31 $12.900 $9.000 12.900
 Balance Sheet
Cash $800 $600 $1.400
Account receivable - net 1.300 800 2.100
Dividends receivable 400 - 400 0
Inventories 2.600 400 3.000
Other current assets 1.200 1.800 3.000
Land 3.000 4.200 7.200
Buildings - net 3.200 3.600 6.800
Equipment - net 2.200 2.400 4.600
Investment in THEO AB 10.800 - 800
10.000 0
Goodwill 2.500 2.500
Total Assets $25.500 $13.800 $30.600

Account payable $1.000 400 $1.400

Dividends payable 2.500 500 400 2.600
Notes payable 4.100 1.900 6.000
Capital stock, $10 par 5.000 2.000 2.000 5.000
Retained earnings 12.900 9.000 12.900
$25.500 13800 $27.900
Non-controlling interest Jan. 1 2.500
Non-controlling interest Dec. 31 200 2.700
Total liabilities and equities 14.400 14.400 $30.600
E4-3
Pam Corporation and Subsidiary
Consolidation Work-papers for the year ended December 31,
2016
(in thousands)

Adjustments and Consolidated

Pam Sun 75% Eliminations Statements
Income Statement
Sales $1,600 $400 $2,000
Income from Sun 55.2 a 55.2
Cost of sales 1,000* 200* 1,200*
Other expenses 388* 104* c 22.4 514.4*
Consolidated Net Income $ 285.6
Non-controlling share f 18.4 18.4*
Controlling share of NI $267.2 $ 96 $ 267.2

Retained Earnings
Retained earnings—Pam $720 $720
Retained earnings —Sun $136 b 136
Controlling share of NI 267.2✓ 96✓ 267.2
Dividends 200* 64* a 48
f 16* 200*
Retained earnings
December 31 $787.2 $168 $787.2

Balance Sheet
Cash $ 212 $ 60 $ 272
Accounts receivable 344 80 424
Dividends receivable
from Sun 24 e 24
Inventories 380 40 420
Note receivable from Pam 20 d 20
Land 260 120 380
Buildings—net 680 320 1,000
Equipment —net 520 200 720
Investment in Sun 727.2 a 7.2
b 720
Patents b 224 c 22.4 201.6
$3,147.2 $840 $3,417.6

Accounts payable $ 340 $ 40 $ 380

Note payable to Sun 20 d 20
Dividends payable 32 e 24 8
Capital stock, $10 par 2,000 600 b 600 2,000
Retained earnings 787.2✓ 168✓ 787.2
$3,147.2 $840
Non-controlling interest b 240
January 1
Non-controlling interest f 2.4 242.4
December 31
1,100 1,100 $3,417.6

Supporting Calculations
Sun’s value at acquisition
Book value at December 31, 2016 $768
Less: 2016Net income (96)
Add: 2016Dividends 64
Book value on January 1, 2016 $736
Fair value of patents 224
Sun’s fair value on January 1, 2016 $960

Purchase price (fair value) of Pam’s 75% share $720

Non-controlling interest (25%) $240

Patents have a ten-year life, so amortization is $22,400 per year.

Sun’s Adjusted Income

Sun’s net income $96

Less: Amortization of Patents (22.4)
Sun’s adjusted income $73.6
Pam’s 75% share $55.2
Non-controlling interest 25% share $ 18.4
E4-4

Pop Corporation and Subsidiary

Consolidation Workpapers
for the year ended December 31, 2016 (in thousands)
Adjustments and Consolidated
Pop Son 75% Eliminations Statements
Income Statement
Sales $1,600 $400
Income from Son 72
Cost of sales 1,000* 200*
Other expenses 388* 104*
Consolidated NI
Noncontrolling share
Controlling share of NI $ 284 $ 96

Retained Earnings
Retained earnings— Pop $ 720
Retained earnings— Son $136
Controlling share of NI 284 96
Dividends 200* 64*

Retained earnings – Dec 31 $ 804 $168

Balance Sheet
Cash $ 236 $ 60
Accounts receivable 320 80
Dividends receivable
from Son 24
Inventories 380 40
Note receivable from Pop 20
Land 260 120
Buildings— net 680 320
Equipment— net 520 200
Investment in Son 744

$3,164 $840

Accounts payable $ 340 $ 40

Note payable to Son 20
Dividends payable 32
Capital stock, $10 par 2,000 600
Retained earnings 804 168
$3,164 $840

*Deduct
 lOMoARc PSD|4996518

Cost = $720,000
Implied FV = $960,000 (720,000/75%)
BV of Son = $736,000 (600,000+168,000+64,000-96,000)
Goodwill = $224,000 (960,000-736,000)

Step 1.
Db. Income from Son $72
Cr. Dividends $48
Investment in Son $24

Step 2.
Db. Capital Stock – Son $600
Retained Earnings – Son $136
Goodwill $224
Cr. Investment in Son $720
Noncontrolling interest $240

Step 3.
-

Step 4.
Net income – Son = $96
(+) Amt. Excess = 0
Adj Net Income = $96
Pop = 75% x $136 = $72
Son = 25% x $136 = $24

Db. Non controlling share $24

Cr. Dividends $16 ($64
x 25%)
Noncontrolling interest $8

Step 5.
Db. N/P to Son $24
Cr. N/R from Son $24

Db. D/P to Son $24

Cr. D/R from Son $24