PART 1

1 Customer List 50,000.00

5-Year Operating Lease 8,000.00
Identifiable R&D 100,000.00
Intangible Assets Acquired 158,000.00

2 Tine Corporation
Fair Values
June 1 2020

Cash 150,000.00
Accounts Receivable 140,000.00
Capitalized Software Costs 320,000.00
In Process and Development Cost 200,000.00
TOTAL ASSETS 810,000.00
Liabilities 130,000.00
NET ASSETS 680,000.00

Consideration Given 800,000.00

Fair Value of Net Assets of Sarawat Company 680,000.00
GOODWILL 120,000.00

3 Alarcon Inc. Book Value Fair Value Difference

Current Assets 1,627,600.00 1,653,600.00 26,000.00
Plant and Equipment 1,040,000.00 1,248,000.00 208,000.00
Patents 260,000.00 338,000.00 78,000.00
Liabilities -171,600.00 -171,600.00 -
NET ASSETS 2,756,000.00 3,068,000.00 312,000.00

Consideration Given 3,068,000.00

 Net Assets (FMV) 3,068,000.00
GOODWILL -

4 Consideration Given 112,000,000.00

Fair Value of Net Assets 120,000,000.00
Gain on Bargain Purchase -8,000,000.00

5 Have no effect on asset values but to reassign the amounts assigned to equity accounts

6 Violet Chachki
Fair Values

Current Asset 100,000.00

Equipment 150,000.00
Land 50,000.00
Buildings 300,000.00
Liabilities 80,000.00
NET ASSETS 520,000.00

Consideration Given 620,000.00

Contingent Consideration 184,000.00
Fair Value of Net Assets of Violet Chachki -520,000.00
GOODWILL 284,000.00

7 Goodwill 284,000.00
Adjustment on Contingent Consideration (184k-170k) -14,000.00
GOODWILL 270,000.00
 8 Estimated Liability for Contingent Consideration 170,000.00
Loss on Estimated Contingent Consideration 5,000.00
Cash 175000.00

PART 2

1-2 FV Parent 80% Subsidiary 20%

Book Value 1,600,000.00 128,000.00 320,000.00
Changes 100,000.00 80,000.00 20,000.00
Gain on Bargain Purchase (Squeeze) 200,000.00 160,000.00 40,000.00
FV on Subsidiary 1,500,000.00 1,200,000 300,000.00

3 Wonder Company
Fair Values

Cash 90,000.00
Inventories 180,000.00
Property and Equipment (net) 918,000.00
Total Assets 1,188,000.00
Current Liabilities -90,000.00
NET ASSETS 1,098,000.00

Price Paid 820,000.00

NCI (1,098,000*20%) 219,600.00
Total 1,039,600.00
Less: FV of Interest Acquired 1,098,000.00
Gain on Bargain Purchase 58,400.00

Arden Co. Wonder Co. Consolidated

Ordinary Shares 900,000.00 900,000.00
 Share Premium 2,700,000.00 2,700,000.00
Retained Earnings 4,860,000.00 58,400.00 4,918,400.00
NCI 219,600.00 219,600.00
Consolidated Stockholder's Equity 8,460,000.00 278,000.00 8,738,000.00

4 Price Paid 1,458,000.00

NCI 162,000.00
Total 1,620,000.00
Less: Fair Value of Interest Acquired 1,098,000.00
GOODWILL 522,000.00

BV Assets - Arden Co. 9,000,000.00

FV Assets - Wonder Co. 1,188,000.00
Goodwill 522,000.00
Conisderation Paid -1,458,000.00
Consolidated Assets 9,252,000.00

5 Net Income 105,000.00

Less: Dividend Paid -36,000.00
Total 69,000.00
NCI (69,000*20%) 13,800.00

6 Net Income of Philips Corporation 285,000.00

Profit Share (69,000*80%) 55,200.00
Consolidated Profit Attribute 340,200.00

7 Goodwill (6,000*80%) 4,800.00

Add: Impairment of Goodwill 162,000.00
 NCI 166,800.00

8 Retained Earnings 1,560,000.00

Separate RE 285,500.00
Profit from Signature Income 55,200.00
Less: Dividends -138,000.00
Consolidated Retained Earnings 1,762,700.00

PART 3

1 Pure Corp. Sincere Co.

Net Income 1,500,000.00 600,000.00
Dividend Income (180,000*80%) -144,000.00
Adjustment Asset undevalue-depresiation Expense -75,000.00
Realized Gross Profit - Intercompany Sales 2012 (150,000*25%) 37,500.00
Unrealized Gross Profit - Intercompany Sales 2013 [(3,600,000/120%)*20%)*25%)] -150,000.00
Adjusted Net Income 1,206,000.00 562,500.00
Share in Net Income Of Sincere 450,000.00
Impairment of Goodwill (60,000*80%) -48,000.00
Net Income Attributable to the Parent 1,608,000.00

2 Share in Net Income of Sincere Co. (562,500*20%) 112,500.00

Impairment of goodwill (60,000*20%) -12,000.00
NCINI 100,500.00

3 Gross Profit - Parent 10,000,000.00

Gross Profit - Subsidiary 5,600,000.00
Adjustments:
 Beginning inventor 80,000.00
Ending inventory -48,000.00 32,000.00
Consolidated Gross Profit 15,632,000.00

4 Net Income - Parent 4,000,000.00

Gain on Sale of Land 500,000.00
Beginning Inventory [(100,000/1.25)*25%)] 20,000.00
Ending Inventory [(40,000/1.25*25%)] -8,000.00 12,000.00
Total 4,512,000.00

Share in the Subsidiary Net Income

Net Income of Subsidiary 1,822,000.00
Beginning Inventory (240,000*25%) 60,000.00
Ending Inventory (160,000*25%) 40,000.00 20,000.00
Loss on Sale of Equipment 18,000.00
Depreciation [(60,000-42,000/3)/1/12)] -3,000.00
Adjusted Net Income of the Subsidiary 1,857,000.00
Multiply by 90% 1,671,300.00

Consolidated Net Income Attributed to Parent 6,183,300.00