$(1,296,000.00) How did Truman allocate Atlanta’s acquisition-date fair value to
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Question
$(1,296,000.00)
How did Truman allocate Atlanta’s acquisition-date fair value to the various assets acquired and liabilities assumed in the combination?
How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests?
How did Truman derive the Investment in Atlanta account balance at the end of 2018?
Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018. At year-end, there were no intra-entity receivables or payables.
On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $777,700 in cash and equity securities. The remaining 30 percent of Atlanta’s shares traded closely near an average price that totaled $333,300 both before and after Truman’s acquisition. In reviewing its acquisition, Truman assigned a $147,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years. The following financial information is available for these two companies for 2018. In addition, the subsidiary’s income was earned uniformly throughout the year. The subsidiary declared dividends quarterly.Explanation / Answer
Truman allocate Atlanta’s acquisition-date fair value to the various assets acquired and liabilities assumed in the combination
2. Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests?
11,250
3. How did Truman derive the Investment in Atlanta account balance at the end of 2018?
4. worksheet to consolidate the financial statements of these two companies as of December 31, 2018
Truman allocate Atlanta’s acquisition-date fair value to the various assets acquired and liabilities assumed in the combination
Book Value 9,26,000.00 Excess of Fair Value over Book Value 1,85,000.00 Excess Fair Vlaue be allocated: Patent (5 Year Remaining Life) 1,47,500.00 Goodwill (Life Time) 37,500.00Related Questions
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