高级财务会计PPT4.pptVIP

* * * * * * * * * * * * * * * * * * * * * * * * * * * December 31, 20X1, Equity-Method Workpaper for Consolidated Financial Statements, Initial Yearof Ownership; 100 Percent Acquisition at Book Value Consolidated Financial Statements—100 Percent Ownership Acquired at Book Value Second and subsequent years of ownership Peerless’s separate income from its own operations for 20X2 is $160,000, and its dividends total $60,000. Special Foods reports net income of $75,000 in 20X2 and pays dividends of $40,000. Entries: Consolidated Financial Statements—100 Percent Ownership Acquired at Book Value Consolidated net income and retained earnings Consolidated Financial Statements—100 PercentOwnership Acquired at More than Book Value Peerless acquires all of Special Foods’ common stock on January 1, 20X1, for $387,500, an amount $87,500 in excess of the book value. Acquisition price includes cash of $300,000 and a 60-day note for $87,500 (paid at maturity during 20X1). At that date, Special Foods is holding the assets and liabilities shown in Slide 7. On the date of combination, all of Special Foods’ assets and liabilities have fair values equal to their book values, except as follows: The buildings and equipment have a remaining economic life of 10 years. At the end of 20X1, Peerless’s management determines that the goodwill acquired in the combination with Special Foods has been impaired. Management determines that a $3,000 goodwill impairment loss should be recognized in the consolidated income statement. Consolidated Financial Statements—100 PercentOwnership Acquired at More than Book Value For the first year immediately after the date of combination, 20X1, Peerless earns income from its own separate operations of $140,000 and pays $60,000 dividends. Special reports net income of $50,000 and pays $30,000 dividends. Consolidated Financial Statements—100 PercentOwnership Acquired at More than Book Value Consolidated Financial Statements—100 PercentOwnership Acqu