a, Acquisition date FV of su

(Acquisition price)
Less: BV of sub
Excess of FV over BV
Assigned to specific acco

GW

b, Equity earnings =975-40

c, Investment = 6000+900

d, S:

A:

I:

D:

E:

Consolidated FS
I/S
Revenues
COGS
Depr exp
Amortization exp
Equity earnings in Sea
Acquisition date FV of sub 6000
(Acquisition price)
Less: BV of sub 2500
Excess of FV over BV 3500
Assigned to specific accounts Amortization
Computer software 1200 /12yrs 100
Patented Tech 2100 /7yrs 300
200 400

Equity earnings =975-400 = 575

Investment = 6000+900-150+940-150+975-150-400*3 = 7165

Common stock 800

RE 3240
Investment 4040

Computer software 1000

Patented tech 1500
GW 200
Investment 2700

Equity earnings 575

Investment 575

Investment 150
Div declared 150

Amortization 400
Computer software 100
Patented tech 300

Consolidated FS Consolidation entries

Persoff Sea Cliff Debit Credit Consolidated
2720 2250 4970
1350 870 2220
275 380 655
Amortization exp 370 25 E: 400 795
Equity earnings in Sea -575 I: 575 0
Sub's FV at acquis
Less: BV at acquisi
Excess of FV over
Assigned to specifi

GW

S:

A:

I:

C*:

E:

Consolidation wor

Revenues
COGS
Sub's FV at acquisition date 470,000
Less: BV at acquisition date 360,000
Excess of FV over BV 110,000
Assigned to specific assets
Royalty 60000 /6yrs 10,000
Trademark 50000 /10yrs 5,000
0 15,000

Common stock 100,000

APIC 30,000
RE 490,000
Investment 620,000

Royalty 20,000
Trademark 30,000
Investment 50,000

Div income 5,000

Div declared 5,000

Investment 200,000
RE (parent 1/1) 200,000

Amortization exp 15,000

Royalty 10,000
Trademark 5,000

Consolidation worksheet Consolidation entries

Micheal Aaron Debit Credit Consolidated
Revenues (610,000) (370,000)
COGS 270,000 140,000
(610,000) (370,000)
(610,000) (370,000)
(610,000) (370,000)
(610,000) (370,000)
(610,000) (370,000)
(610,000) (370,000)