90.2K

Verified Solution

Link Copied!

A, B, C

On January 1, 2013, Parties prepared the following fair-value allocation schedule: Consideration transferred by Parflex $344,000 10% noncontrolling interest fair value36,000 Fair value of Eagle 380,000 Book value of Eagle324,000 Excess fair over book value 56,000 to equipment (undervalued, remaining life of 9 years) 18,000 to goodwill (indefinite life)$ 33.000 The companies' financial statements for the year ending December 31, 2015, follow: Parflex Eagle Sales Cost of goods sold Depreciation expense Equity in Eagle's earnings Separate company net incomeRetained earnings 1'1 Net income Dividends declaredRetained earnings 1211Cash and receivablesInventoryInvestment in Eagle Property and equipment (net) Total assets Liabilities Common stock-Parflex Common stock?Eagle Retained earnings 12r31 Total liabilities and owners' equity.. At year-end, there were no intra-entity receivables or payables. a. Compute the goodwill allocation to the controlling and noncontrolling interest. b. Show how Parflex determined its Investment in Eagle account balance. c. Determine the amounts that should appear on Parflex's December 31, 2015, consolidated statement offinancial_p_osition and its 2015 consolidated income statement. On January 1, 2013, Parties prepared the following fair-value allocation schedule: Consideration transferred by Parflex $344,000 10% noncontrolling interest fair value36,000 Fair value of Eagle 380,000 Book value of Eagle324,000 Excess fair over book value 56,000 to equipment (undervalued, remaining life of 9 years) 18,000 to goodwill (indefinite life)$ 33.000 The companies' financial statements for the year ending December 31, 2015, follow: Parflex Eagle Sales Cost of goods sold Depreciation expense Equity in Eagle's earnings Separate company net incomeRetained earnings 1'1 Net income Dividends declaredRetained earnings 1211Cash and receivablesInventoryInvestment in Eagle Property and equipment (net) Total assets Liabilities Common stock-Parflex Common stock?Eagle Retained earnings 12r31 Total liabilities and owners' equity.. At year-end, there were no intra-entity receivables or payables. a. Compute the goodwill allocation to the controlling and noncontrolling interest. b. Show how Parflex determined its Investment in Eagle account balance. c. Determine the amounts that should appear on Parflex's December 31, 2015, consolidated statement offinancial_p_osition and its 2015 consolidated income statement

Answer & Explanation Solved by verified expert

See Answer