1. On January 1, 2014, Jannison Inc. acquired 90% of Techron Co. by paying $477,000
cash. There is no active trading market for Techron stock. Techron Co. reported a Common
Stock account balance of $140,000 and Retained Earnings of $280,000 at that date. The
fair value of Techron Co. was appraised at $530,000. The total annual amortization was
$11,000 as a result of this transaction. The subsidiary earned $98,000 in 2014 and
$126,000 in 2015 with dividend payments of $42,000 each year. Without regard for this
investment, Jannison had income of $308,000 in 2014 and $364,000 in 2015. Use the
economic unit concept to account for this acquisition. What is the non-controlling interest
balance as of December 31, 2015? 2. On January 1, 2014, Glenville Co. acquired an 80%
interest in Acron Corp. for $500,000. There is no active trading market for Acron’s stock.
The fair value of Acron’s net assets was $600,000 and Glenville accounts for its interest
using the acquisition method. Determine the value assigned to the non-controlling interest
as of the date of the acquisition. 3. On January 1, 2015, John Doe Enterprises (JDE)
acquired a 55% interest in Bubba Manufacturing, Inc. (BMI). JDE paid for the transaction
with $3 million cash and 500,000 shares of JDE common stock (par value $1.00 per
share). At the time of the acquisition, BMI’s book value was $16,970,000. On January 1,
JDE stock had a market value of $14.90 per share and there was no control premium in
this transaction. Any consideration transferred over book value is assigned to goodwill.
BMI had the following balances on January 1, 2015. , For internal reporting purposes, JDE
employed the equity method to account for this investment. The following account
balances are for the year ending December 31, 2015 for both companies.Required: Prepare
a consolidation worksheet for this business combination. Assume goodwill has been
reviewed and there is no goodwill impairment. 4. Beta Corp. owns less than one hundred
percent of the voting common stock of Shedds Co. Under what conditions will Beta be
required to prepare consolidated financial statements? 5. What is the purpose of the
adjustments to depreciation expense within the consolidation process when there has been
an intra-entity transfer of a depreciable asset? 6. Fraker, Inc. owns 90 percent of Richards,
Inc. and bought $200,000 of Richards’ inventory in 2013. The transfer price was equal to
30 percent of the sales price. When preparing consolidated financial statements, what
