The condensed financial statements for Aylmer Inc and London Co for the year ended December 31, Year 5, are as follows: On December 31, Year 5, after the above figures were prepared, Aylmer issued $375,000 in debt and 13,000 new shares to the owners of London for 75% of the outstanding shares of that company. Aylmer shares had a fair value of $36.50 per share. Aylmer paid $26,590 to a broker for arranging the transaction. In addition, Aylmer paid $41,668 in stock issuance costs. Required: 1. Using the fair value enterprise method, what are the consolidated balances for the year ended December 31, Year 5, for the following accounts? (a) Cash (b) Retained earnings, 1/1/Year 5 (c) Equipment (d) Patented technology (e) Goodwill (f) Liabilities (g) Common shares (h) Non-controlling interests 2. Using the identifiable net assets method, what are the consolidated balances for the year ended December 31, Year 5, for the following accounts? (a) Goodwill (b) Non-controlling interests. Use excel to answer these questions. Show calculations as necessary.
The condensed financial statements for Aylmer Inc and London Co for the year ended December 31, Year 5, are as follows:
On December 31, Year 5, after the above figures were prepared, Aylmer issued $375,000 in debt and 13,000 new shares to the owners of London for 75% of the outstanding shares of that company. Aylmer shares had a fair value of $36.50 per share.
Aylmer paid $26,590 to a broker for arranging the transaction. In addition, Aylmer paid $41,668 in stock issuance costs.
Required:
|
1. Using the fair value enterprise method, what are the consolidated balances for the year ended December 31, Year 5, for the following accounts? |
|
|
(a) |
Cash |
|
(b) |
Retained earnings, 1/1/Year 5 |
|
(c) |
Equipment |
|
(d) |
Patented technology |
|
(e) |
Goodwill |
|
(f) |
Liabilities |
|
(g) |
Common shares |
|
(h) |
Non-controlling interests |
|
2. Using the identifiable net assets method, what are the consolidated balances for the year ended December 31, Year 5, for the following accounts? |
|
|
(a) |
Goodwill |
|
(b) |
Non-controlling interests. |
Use excel to answer these questions. Show calculations as necessary.
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