1. Consider the following information from the financial statements of Para Inc.
ID: 2392924 • Letter: 1
Question
1. Consider the following information from the financial statements of Para Inc. and SIG Co.
P S
Separate income 450
Net income 300
Separate OCI 125 100
S – OCI (P’s share) 80
Provide the following:
a. Total Consolidated Net Income _________
b. Consolidated OCI_________
c. P’s %, Consolidated OCI_________
d. P’s %, Consolidated Net Income_________
e. Total Consolidated Comprehensive Income_________
f. P’s %, Consolidated Comprehensive Income_________
2. Assume the following data apply shortly after Perfunctory Co. acquires Serious, Inc.:
P Co. (000s) S Co. (000s)
Assets 400 200
Liabilities 250 100
CS 75 60
APIC/OCC 50 30
RE 25 10
P assets have a fair value = 435k; S’ identifiable assets have a fair value = 320k. P acquires 75% of S’s outstanding voting stock for $165k cash. S’ assets include pre-acquisition Goodwill of 40k, and P’s assets (and S’ liabilities) reflect a loan P has made to S for 10k. The DOA consolidated Balance Sheet should show:
a. identifiable assets____________
b. liabilities____________
c. Common Stock____________
d. APIC/OCC_____________
e. RE_____________
f. Goodwill (algebraic)____________
Explanation / Answer
Requirement 1 a. $ 750 (450+300) b. $ 225 (125+100) C. 91.11% (125+80)/225*100 d. 92.00% (450+240)/750*100 e. $ 975 (750+225) f. 91.79% (205+690)/975*100 Requirement 2 a. $ 745 (435+320-10) b. $ 340 (250+100-10) C. $ 75 d. $ 73 (50+30*75%) e. $ 33 (25+10*75%) f. $ - W.N.1 W.N.1 S Co. CS $ 60 APIC $ 30 RE $ 130 (10+(320-200)) $ 220 P's Share $ 165 (220*75%) Cash Paid $ 165 Goodwill $ -
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