Problem 1 Treatment

1) Conso Assets Total Assets of Parent (bv) +

Total Assets of Subsidiary (fv) +
Consideration Transferred
Acquisition Costs
Goodwill-net +
Total

OSC 640,000.00
SP 320,000.00
FVCT 960,000.00
NCI 230,400.00
Total FVCT 1,190,400.00
FVNAA - 1,152,000.00
GW 38,400.00

2) Conso SHE Parent SHE +

NCI +
Consideration +
Acq Rel Costs -
BPG +
G/L on Sale +/-
Total

3) Conso NI Parent 768,000.00

Subsidiary 256,000.00
Share in Dividend -
BPG -
Amort'n
Inv (understated) - 102,400.00
Equipment (understated) - 25,600.00
IL -
Total 896,000.00

4) Conso Assets Dec 31 Parent BV 5,350,400.00

Subsidiary FV 1,792,000.00
Inv in Subs - 960,000.00
Amort'n
Inv (understated) - 102,400.00
Equipment (understated) - 25,600.00
GW 38,400.00
6,092,800.00

BV current date 1,587,200.00

FV adj
 Inv (understated) 102,400.00
Equipment 102,400.00
1,792,000.00

5) Conso SHE (Dec) OS-Parent 2,176,000.00

SP-Parent 832,000.00
Conso RE (Parent)
NCI
Total

RE, beg 640,000.00

NI 870,400.00
Dividend Paid (Parent) -
RE, end 1,510,400.00

Total Net Income 896,000.00

NCI-Sub NI 25,600.00
NI excluding share of NCI 870,400.00

NI (Subsidiary) 256,000.00
Amortization
Inv - 102,400.00
Equip - 25,600.00
Share 128,000.00
NCI % 20%
Share of NCI 25,600.00

Problem 2
A) NCI, beg 470,000.00
NCI-net income 38,970.00
Share in Div - 12,000.00
NCI, end 496,970.00

FVNAA
OS 1,000,000.00
SP 450,000.00
RE 780,000.00
FVNAA (BV) 2,230,000.00
Adjustments
Adjustments
Inventtory (OV) - 44,000.00
Equipment 60,000.00
FVNAA 2,246,000.00
 RE, beg 780,000.00
Net Income 170,000.00
Dividend Paid - 60,000.00
RE, end 890,000.00

Net Income, Subs 170,000.00

Amort
Inv 44,000.00
Equipment - 8,750.00
205,250.00
NCI % 0.20
Share of NCI 41,050.00
IL - 2,080.00
38,970.00

Full
FVCT 2,815,000.00
BV of SHE - 2,230,000.00
Balance 585,000.00
FV Adj - 16,000.00
Balance 569,000.00

B) OSC 3,000,000.00
SP 700,000.00
RE 2,381,380.00
NCI 496,970.00
Conso SHE 6,578,350.00

RE, beg 2,100,000.00

Net Income 361,380.00
Dividend Paid - 80,000.00
RE, end 2,381,380.00

NI, Parent 300,000.00

Share in Dividend - 48,000.00
BPG

NI subs 170,000.00
Amort'n
Inv 44,000.00
Eq - 8,750.00
IL - 56,900.00
400,350.00
NCI, NI 38,970.00
NCI, Parent 361,380.00
Problem 3
RE, beg 1,400,000.00
Net Income 569,000.00
Dividend Paid - 315,000.00
Conso RE, end 1,654,000.00

NI (parent) 525,000.00
NI (subs) 157,500.00
Share in Dividend (Parent) - 70,000.00
Share of NCI -
Amort'n -
IL` - 12,000.00
Conso NI 600,500.00
Share of NCI - 31,500.00
569,000.00

NI-Subs 157,500.00
Amort -
157,500.00
NCI % 20%
31,500.00
IL -
-

Problem 4
A) NI-Subsidiary 250,000.00
Amortn
Patent (UV) - 40,000.00
Equip (OV) 5,000.00
215,000.00
NCI% 40%
Share 86,000.00
IL - 6,000.00
NCI-NI Subs 80,000.00

FVCT 1,200,000.00
NCI 800,000.00
Total 2,000,000.00
FVNAA 1,680,000.00
GW 320,000.00

BV 1,500,000.00
FV adj
 Patent 200,000.00
Equipment - 20,000.00
FVNAA 1,680,000.00

FVCT 2,000,000.00
BV SHE 1,500,000.00
All Exc 500,000.00
FV adj 180,000.00
GW 320,000.00

B) NCI, beg 800,000.00

Net Income-Subs 80,000.00
Share in Div - 80,000.00
NCI, end 800,000.00

C) Investment in Subs 1,200,000.00

3,328,000.00
1,228,800.00

38,400.00
4,595,200.00

2,688,000.00
230,400.00
960,000.00
-
-
-
3,878,400.00
FV Partial
470,000.00 449,200.00
Parent NCI
2,345,000.00 470,000.00
- 1,784,000.00 - 446,000.00
561,000.00 24,000.00
- 12,800.00 - 3,200.00
548,200.00 20,800.00
800,000.00 672,000.00
1,200,000.00 800,000.00
900,000.00 600,000.00
300,000.00 200,000.00
108,000.00 72,000.00
192,000.00 128,000.00