pea corporation purchased 75 percent of the outstanding voting 244844

Pea Corporation purchased 75 percent of the outstanding voting stock of Sen Corporation for $2,400,000 on January 1, 2011. Sen’s stockholders’ equity on this date consisted of the following (in thousands):

Capital stock, $10 par……………………$1,000

Additional paid-in capital……………….. 600

Retained earnings December 31, 2010….. 800

Total stockholders’ equity……………….$2,400

The excess fair value of the net assets acquired was assigned 10 percent to undervalued inventory (sold in 2011), 40 percent to undervalued plant assets with a remaining useful life of eight years, and 50 percent to goodwill. Comparative trial balances of Pea Corporation and Sen Corporation at December 31, 2015, are as follows:



REQUIRED: Determine the amounts that would appear in the consolidated financial statements of Pea Corporation and Subsidiary for each of the following items:

1. Goodwill at December 31, 2015

2. Noncontrolling interest share for 2015

3. Consolidated retained earnings at December 31, 2014

4. Consolidated retained earnings at December 31, 2015

5. Consolidated net income for 2015

6. Noncontrolling interest at December 31, 2014

7. Noncontrolling interest at December 31,2015

Related Articles

armstrong helmet company 239138

Armstrong Helmet Company manufactures a unique model of bicycle helmet Question Case project Learning Objectives: Prepare practical applications of course concepts Develop analytical and critical thinking Develop decision-making capabilities Enhance professional...

read more
GET A FREE QUOTE





  
Open chat
Need help? We are Online 24/7
Hello 👋
Can we help you?