The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 408 Weeks Ago, 1 Day Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Given separate and consolidated balance sheets, reconstruct the schedule to allocate the fair value/book value differential
Pam Corporation purchased a block of Sap Company common stock for $520,000 cash on January 1, 2011. Separate-company and consolidated balance sheets prepared immediately after the acquisition are summarized as follows (in thousands):
|
Pam Corporation and Subsidiary Consolidated Balance Sheet at January 1, 2011 |
|||
| Â |
Pam |
Sap |
Consolidated |
|
Assets |
 |  |  |
|
Current assets |
$ 380 |
$200 |
$ 580 |
|
Investment in Sap |
520 |
— |
— |
|
Plant assets—net |
1,100 |
400 |
1,520 |
|
Goodwill |
— |
— |
110 |
|
Total assets |
$2,000 |
$600 |
$2,210 |
|
Equities |
 |  |  |
|
Liabilities |
$ 800 |
$ 80 |
$ 880 |
|
Capital stock, $20 par |
1,000 |
400 |
1,000 |
|
Retained earnings |
200 |
120 |
200 |
|
Noncontrolling interest |
— |
— |
130 |
|
Total equities |
$2,000 |
$600 |
$2,210 |
REQUIRED: Reconstruct the schedule to allocate the fair value/book value differential from Pam’s investment in Sap.
Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------pos-----------ted----------- so-----------lut-----------ion-----------.Pl-----------eas-----------e p-----------ing----------- me----------- on-----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be-----------