70.2K

Verified Solution

Link Copied!

Required: o. Determine the annual excess fair over book value amortization. b. Prepare a worksheet to determine the consolidated values to be reported on Allison's financial statements: Complete this question by entering your answers in the tabs below. Determine the annual excess fair over book value amortization. Individual financial statements for each company as of December 31, 2021. follow. Parentheses indicate credit balances. Dividends declared were paid in the same period. Required A ALLISON CORPORATION AND CONSOLIDATED SUBSIDIARY Consolidation Worksheet For Year Ending December 31, 2021 Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1, 2020, In exchange for $6,244,000 in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December 31 fiscal year-ends, At the acquisition date, Mathlas's stockholders' equity was $2,090,000 including retained earnings of $1,590,000. At the acquisition date, Allison prepared the following fair-value allocation schedule for its newly acquired subsidiary: Postacquisition, Allison employs the equity method to account for its investment in Mathias. During the fwo years following the business combination, Mathlas reports the following income and dividends: No asset impairments have occurred since the acquisition date. Individual financial statements for each company as of December 31, 2021, follow. Parentheses indicate credit balances. Dividends declared were paid in the same period

Answer & Explanation Solved by verified expert

See Answer