When Jolt Co. acquired 75% of the common stock of Yelts Corp., Yelts owned land with a book value of $70,000 and a fair value of $100,000. What amount should have been reported for the land in a consolidated balance sheet, assuming the investment was obtained prior to the date the purchase method of accounting for new business combinations was discontinued? a) $92,500. b) $75,000. c) $85,000. d) $70,000. e) $100,0

Item Cash Pie Corporation acquired 75 percent of slice Company's ownership on January 1, 20X8, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of slice's net assets at acquisition was $92,000. The book values and fair values of Slice's assets and liabilities were equall, except for Slice's buildings and equipment, which were worth $18,400 more than book value. Accumulated depreciation on the buildings and equipment was $24,000 on the acquisition date. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, the management of Pie concluded at December 31, 20Xx8, that goodwill from its purchase of Slice shares had been impaired and the correct carrying amount was $2,600. Goodwill and goodwill impairment were assigned proportionately to the controlling and noncontrolling shareholders. Trial balance data for Pie and Slice on December 31, 20X8, are as follows: Prepare a three-part consolidation…

In a prior year, a wholly-owned subsidiary sold land costing $100,000 to its parent for $125,000. In the current year, the parent sold the land to an outside company for $170,000. On a working paper prepared to consolidate the accounts of the parent and its subsidiary at the end of the current year, the eliminating entry connected with this land sale includes Select one: a. a $25,000 debit to the investment in subsidiary account b. a $45,000 debit to beginning retained earnings c. a $25,000 credit to gain on sale of land Od. no entry; the land is no longer in the consolidated entity O O

Sagar

Bristle Co. acquired 75 percent of Silver Corporation's common stock on December 31, 20X8, for $300,000. The fair value of the non-controlling interest at that date was determined to be $100,000. Silver's balance sheet immediately before the combination reflected the following balances: Cash and Receivables $40,000 Inventory 70,000 Land 90,000 Buildings and Equipment (net) 250,000 Total Assets $450,000 Accounts Payable $30,000 Income Taxes Payable 40,000 Bonds Payable 100,000 Common Stock 100,000 Retained Earnings 180,000 Total Liabilities and Stockholders' Equity $450,000 A careful review of the fair value of Silver's assets and liabilities indicated that inventory, land, and buildings and equipment (net) had fair values of $65,000, $100,000, and, $300,000 respectively. Goodwill is assigned proportionately to Bristle and the non- controlling shareholders. What amount of goodwill will be reported in the consolidated balance sheet immediately following the acquisition? a. $0 b. $120,000…