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41. Perry Company acquires 100% of the stock of Hurley Corporation on
January 1, 2010, for $3,800 cash. As of that date Hurley has the following trial
balance;
Any excess of consideration transferred over fair value of net assets acquired is
considered goodwill with an indefinite life. FIFO inventory valuation method is
used.
Compute the amount of Hurley's buildings that would be reported in a December
31, 2010, consolidated balance sheet.
42. Perry Company acquires 100% of the stock of Hurley Corporation on
January 1, 2010, for $3,800 cash. As of that date Hurley has the following trial
balance;
Any excess of consideration transferred over fair value of net assets acquired is
considered goodwill with an indefinite life. FIFO inventory valuation method is
used.
Compute the amount of Hurley's equipment that would be reported in a
December 31, 2010, consolidated balance sheet.
43. Perry Company acquires 100% of the stock of Hurley Corporation on
January 1, 2010, for $3,800 cash. As of that date Hurley has the following trial
balance;
Any excess of consideration transferred over fair value of net assets acquired is
considered goodwill with an indefinite life. FIFO inventory valuation method is
used.
Compute the amount of total expenses reported in an income statement for the
year ended December 31, 2010, in order to recognize acquisition-date allocations
of fair value and book value differences,
44. Perry Company acquires 100% of the stock of Hurley Corporation on
January 1, 2010, for $3,800 cash. As of that date Hurley has the following trial
balance;
Any excess of consideration transferred over fair value of net assets acquired is
considered goodwill with an indefinite life. FIFO inventory valuation method is
used.
Compute the amount of Hurley's long-term liabilities that would be reported in a
December 31, 2010, consolidated balance sheet.
45. Perry Company acquires 100% of the stock of Hurley Corporation on
January 1, 2010, for $3,800 cash. As of that date Hurley has the following trial
balance;
Any excess of consideration transferred over fair value of net assets acquired is
considered goodwill with an indefinite life. FIFO inventory valuation method is
used.
Compute the amount of Hurley's buildings that would be reported in a December
31, 2011, consolidated balance sheet.
46. Perry Company acquires 100% of the stock of Hurley Corporation on
January 1, 2010, for $3,800 cash. As of that date Hurley has the following trial
balance;
Any excess of consideration transferred over fair value of net assets acquired is
considered goodwill with an indefinite life. FIFO inventory valuation method is
used.
Compute the amount of Hurley's equipment that would be reported in a
December 31, 2011, consolidated balance sheet.
47. Perry Company acquires 100% of the stock of Hurley Corporation on
January 1, 2010, for $3,800 cash. As of that date Hurley has the following trial
balance;
Any excess of consideration transferred over fair value of net assets acquired is
considered goodwill with an indefinite life. FIFO inventory valuation method is
used.
Compute the amount of Hurley's land that would be reported in a December 31,
2011, consolidated balance sheet.
48. Perry Company acquires 100% of the stock of Hurley Corporation on
January 1, 2010, for $3,800 cash. As of that date Hurley has the following trial
balance;
Any excess of consideration transferred over fair value of net assets acquired is
considered goodwill with an indefinite life. FIFO inventory valuation method is
used.
Compute the amount of Hurley's long-term liabilities that would be reported in a
December 31, 2011, consolidated balance sheet.
49. Kaye Company acquired 100% of Fiore Company on January 1, 2011. Kaye
paid $1,000 excess consideration over book value which is being amortized at $20
per year. Fiore reported net income of $400 in 2011 and paid dividends of $100.
Assume the equity method is applied. How much will Kaye's income increase or
decrease as a result of Fiore's operations?
50. Kaye Company acquired 100% of Fiore Company on January 1, 2011. Kaye
paid $1,000 excess consideration over book value which is being amortized at $20
per year. Fiore reported net income of $400 in 2011 and paid dividends of $100.
Assume the partial equity method is applied. How much will Kaye's income
increase or decrease as a result of Fiore's operations?
51. Kaye Company acquired 100% of Fiore Company on January 1, 2011. Kaye
paid $1,000 excess consideration over book value which is being amortized at $20
per year. Fiore reported net income of $400 in 2011 and paid dividends of $100.
Assume the initial value method is applied. How much will Kaye's income
increase or decrease as a result of Fiore's operations?
52. Kaye Company acquired 100% of Fiore Company on January 1, 2011. Kaye
paid $1,000 excess consideration over book value which is being amortized at $20
per year. Fiore reported net income of $400 in 2011 and paid dividends of $100.
Assume the partial equity method is used. In the years following acquisition, what
additional worksheet entry must be made for consolidation purposes that is not
required for the equity method?
