The Individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2021, follow. Gibson acquired a 60 percent Interest in Keller on January 1, 2020, In exchange for various considerations totaling $480,000. At the acquisition date, the fair value of the noncontrolling Interest was $320,000 and Keller's book value was $630,000. Keller had developed internally a customer list that was not recorded on Its books but had an acquisition-date fair value of $170,000. This Intangible asset is being amortized over 20 years. Gibson uses the partial equity method to account for its Investment In Keller. Gibson sold Keller land with a book value of $80,000 on January 2, 2020, for $160,000. Keller still holds this land at the end of the current year.
The Individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2021, follow. Gibson acquired a 60 percent Interest in Keller on January 1, 2020, In exchange for various considerations totaling $480,000. At the acquisition date, the fair value of the noncontrolling Interest was $320,000 and Keller's book value was $630,000. Keller had developed internally a customer list that was not recorded on Its books but had an acquisition-date fair value of $170,000. This Intangible asset is being amortized over 20 years. Gibson uses the partial equity method to account for its Investment In Keller. Gibson sold Keller land with a book value of $80,000 on January 2, 2020, for $160,000. Keller still holds this land at the end of the current year.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 8 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning