Effect of Assignment on Consolidated

Balance Sheet at Acquisition

by Jeanne M. David, Ph.D., Univ. of Detroit Mercy

to accompany
Advanced Accounting, 10th edition
by Floyd A. Beams, Robin P. Clement,
Joseph H. Anthony, and Suzanne Lowensohn

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Effect of Assignment on Consolidated
Balance Sheet at Acquisition
On December 31, 2011, Pil purchases 90 percent of Sad
Corporation’s outstanding voting common stock directly
from Sad Corporation’s stockholders for $5,200,000 cash
plus 100,000 shares of Pil Corporation $10 par common
stock with a market value of $5,000,000. Additional costs
of combination are $200,000. Pil pays these additional
costs in cash. Pil and Sad must continue to operate as
parent company and subsidiary because 10 percent of Sad’s
shares are outstanding and held by noncontrolling
stockholders. We expense the $200,000 costs in recording
the investment.
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Effect of Assignment on Consolidated
Balance Sheet at Acquisition

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Effect of Assignment on Consolidated
Balance Sheet at Acquisition

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Effect of Assignment on Consolidated
Balance Sheet at Acquisition
a

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Effect of Assignment on Consolidated
Balance Sheet at Acquisition

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Effect of Amortization on Consolidated Balance
Sheet After Acquisition

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Effect of Amortization on Consolidated Balance
Sheet After Acquisition
Schedule of allocation excess fair value over book value

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Effect of Amortization on Consolidated Balance
Sheet After Acquisition

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Effect of Amortization on Consolidated Balance
Sheet After Acquisition

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Effect of Amortization on Consolidated Balance
Sheet After Acquisition

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Consolidated Financial Statements

Thank You
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