On June 30, 2021, Plaster, Inc., paid $988,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $247,000. At acquisition date. Stucco reported the following book values for its assets and liabilities: Cash Accounts receivable Inventory Land Buildings Equipment Accounts payable (Parentheses indicate credit balances.) On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows: Equipment (3-year remaining life) Database (18-year remaining life) Cash Accounts receivable (net) Inventory Land $ 64,500 136,900 219,200 78,480 189,480 324,300 (37,780) At the end of 2021, the following comparative (2020 and 2021) balance sheets and consolidated income statement were available: Plaster, Inc. December 31, 2020 Buildings (net) Equipment (net) Database Total assets Accounts payable Long-term liabilities Common stock Noncontrolling interest Retained earnings Total liabilities and equities Revenues Cost of goods sold Depreciation $ 80,400 187,600 Database amortization Interest and other expenses Consolidated net income 45,700 384,500 441,100 318,900 260,300 1,912,500 e $ 3,363,000 $ 85,400 427,000 1,921,500 PLASTER, INC., AND SUBSIDIARY STUCCO COMPANY Consolidated Income Statement For the Year Ended December 31, 2821 $ 785,200 199,200 9,380 10,600 e 929,100 $ 3,363,000 Consolidated December 31, 2021 258,100 515,900 $ 764,900 389,300 399,700 2,168,000 178,220 $ 4,674,120 $ 114,200 1,351,540 1,921,500 272,600 1,014,280 $ 4,674,120 $ 1,296,600 1,004,380 $ 292,220 Additional Information for 2021 • On December 1, Stucco paid a $47,200 dividend. During the year, Plaster paid $172,000 in dividends. . During the year, Plaster issued $924,540 in long-term debt at par.
On June 30, 2021, Plaster, Inc., paid $988,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $247,000. At acquisition date. Stucco reported the following book values for its assets and liabilities: Cash Accounts receivable Inventory Land Buildings Equipment Accounts payable (Parentheses indicate credit balances.) On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows: Equipment (3-year remaining life) Database (18-year remaining life) Cash Accounts receivable (net) Inventory Land $ 64,500 136,900 219,200 78,480 189,480 324,300 (37,780) At the end of 2021, the following comparative (2020 and 2021) balance sheets and consolidated income statement were available: Plaster, Inc. December 31, 2020 Buildings (net) Equipment (net) Database Total assets Accounts payable Long-term liabilities Common stock Noncontrolling interest Retained earnings Total liabilities and equities Revenues Cost of goods sold Depreciation $ 80,400 187,600 Database amortization Interest and other expenses Consolidated net income 45,700 384,500 441,100 318,900 260,300 1,912,500 e $ 3,363,000 $ 85,400 427,000 1,921,500 PLASTER, INC., AND SUBSIDIARY STUCCO COMPANY Consolidated Income Statement For the Year Ended December 31, 2821 $ 785,200 199,200 9,380 10,600 e 929,100 $ 3,363,000 Consolidated December 31, 2021 258,100 515,900 $ 764,900 389,300 399,700 2,168,000 178,220 $ 4,674,120 $ 114,200 1,351,540 1,921,500 272,600 1,014,280 $ 4,674,120 $ 1,296,600 1,004,380 $ 292,220 Additional Information for 2021 • On December 1, Stucco paid a $47,200 dividend. During the year, Plaster paid $172,000 in dividends. . During the year, Plaster issued $924,540 in long-term debt at par.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 15E
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