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Beams Aa13e PPT 03
Beams Aa13e PPT 03
Chapter 3
An Introduction to
Consolidated Financial
Statements
Assets
Cash $ 20 $ 20 blank blank $ 40
Retained
____ 20 a 20 ____ ____
earnings―Son
a. To eliminate reciprocal investment and equity accounts and to assign the excess of investment cost (fair value) over book value to
goodwill.
Beginning Ending
Current year's
blank unamortized unamortized
amortization
excess excess
Plant 60 (15) 45
Liabilities (5) 1 (4)
Goodwill 35 0 35
Total 90 (14) 76
Beginning Ending
Current year's
blank unamortized
amortization
unamortized
excess excess
Inventory 10 (10) 0
Land 20 0 20
Total 30 (10) 20
$571.50 x .10/.90
= $63.50