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42. McGuire Company acquired 90 percent of Hogan Company on January 1,
2010, for $234,000 cash. This amount is reflective of Hogan's total fair value.
Hogan's stockholders' equity consisted of common stock of $160,000 and
retained earnings of $80,000. An analysis of Hogan's net assets revealed the
following:
Any excess consideration transferred over fair value is attributable to an
unamortized patent with a useful life of 5 years.
In consolidation at January 1, 2010, what adjustment is necessary for Hogan's
Buildings account?
43. McGuire Company acquired 90 percent of Hogan Company on January 1,
2010, for $234,000 cash. This amount is reflective of Hogan's total fair value.
Hogan's stockholders' equity consisted of common stock of $160,000 and
retained earnings of $80,000. An analysis of Hogan's net assets revealed the
following:
Any excess consideration transferred over fair value is attributable to an
unamortized patent with a useful life of 5 years.
In consolidation at December 31, 2010, what adjustment is necessary for Hogan's
Buildings account?
44. McGuire Company acquired 90 percent of Hogan Company on January 1,
2010, for $234,000 cash. This amount is reflective of Hogan's total fair value.
Hogan's stockholders' equity consisted of common stock of $160,000 and
retained earnings of $80,000. An analysis of Hogan's net assets revealed the
following:
Any excess consideration transferred over fair value is attributable to an
unamortized patent with a useful life of 5 years.
In consolidation at December 31, 2011, what adjustment is necessary for Hogan's
Buildings account?
45. McGuire Company acquired 90 percent of Hogan Company on January 1,
2010, for $234,000 cash. This amount is reflective of Hogan's total fair value.
Hogan's stockholders' equity consisted of common stock of $160,000 and
retained earnings of $80,000. An analysis of Hogan's net assets revealed the
following:
Any excess consideration transferred over fair value is attributable to an
unamortized patent with a useful life of 5 years.
In consolidation at January 1, 2010, what adjustment is necessary for Hogan's
Equipment account?
46. McGuire Company acquired 90 percent of Hogan Company on January 1,
2010, for $234,000 cash. This amount is reflective of Hogan's total fair value.
Hogan's stockholders' equity consisted of common stock of $160,000 and
retained earnings of $80,000. An analysis of Hogan's net assets revealed the
following:
Any excess consideration transferred over fair value is attributable to an
unamortized patent with a useful life of 5 years.
In consolidation at December 31, 2010, what adjustment is necessary for Hogan's
Equipment account?
47. McGuire Company acquired 90 percent of Hogan Company on January 1,
2010, for $234,000 cash. This amount is reflective of Hogan's total fair value.
Hogan's stockholders' equity consisted of common stock of $160,000 and
retained earnings of $80,000. An analysis of Hogan's net assets revealed the
following:
Any excess consideration transferred over fair value is attributable to an
unamortized patent with a useful life of 5 years.
In consolidation at December 31, 2011, what adjustment is necessary for Hogan's
Equipment account?
48. McGuire Company acquired 90 percent of Hogan Company on January 1,
2010, for $234,000 cash. This amount is reflective of Hogan's total fair value.
Hogan's stockholders' equity consisted of common stock of $160,000 and
retained earnings of $80,000. An analysis of Hogan's net assets revealed the
following:
Any excess consideration transferred over fair value is attributable to an
unamortized patent with a useful life of 5 years.
In consolidation at January 1, 2010, what adjustment is necessary for Hogan's
Land account?
49. McGuire Company acquired 90 percent of Hogan Company on January 1,
2010, for $234,000 cash. This amount is reflective of Hogan's total fair value.
Hogan's stockholders' equity consisted of common stock of $160,000 and
retained earnings of $80,000. An analysis of Hogan's net assets revealed the
following:
Any excess consideration transferred over fair value is attributable to an
unamortized patent with a useful life of 5 years.
In consolidation at December 31, 2010, what adjustment is necessary for Hogan's
Land account?
50. McGuire Company acquired 90 percent of Hogan Company on January 1,
2010, for $234,000 cash. This amount is reflective of Hogan's total fair value.
Hogan's stockholders' equity consisted of common stock of $160,000 and
retained earnings of $80,000. An analysis of Hogan's net assets revealed the
following:
Any excess consideration transferred over fair value is attributable to an
unamortized patent with a useful life of 5 years.
In consolidation at December 31, 2011, what adjustment is necessary for Hogan's
Land account?
51. McGuire Company acquired 90 percent of Hogan Company on January 1,
2010, for $234,000 cash. This amount is reflective of Hogan's total fair value.
Hogan's stockholders' equity consisted of common stock of $160,000 and
retained earnings of $80,000. An analysis of Hogan's net assets revealed the
following:
Any excess consideration transferred over fair value is attributable to an
unamortized patent with a useful life of 5 years.
In consolidation at January 1, 2010, what adjustment is necessary for Hogan's
Patent account?
52. McGuire Company acquired 90 percent of Hogan Company on January 1,
2010, for $234,000 cash. This amount is reflective of Hogan's total fair value.
Hogan's stockholders' equity consisted of common stock of $160,000 and
retained earnings of $80,000. An analysis of Hogan's net assets revealed the
following:
Any excess consideration transferred over fair value is attributable to an
unamortized patent with a useful life of 5 years.
In consolidation at December 31, 2010, what net adjustment is necessary for
Hogan's Patent account?
53. McGuire Company acquired 90 percent of Hogan Company on January 1,
2010, for $234,000 cash. This amount is reflective of Hogan's total fair value.
Hogan's stockholders' equity consisted of common stock of $160,000 and
retained earnings of $80,000. An analysis of Hogan's net assets revealed the
following:
Any excess consideration transferred over fair value is attributable to an
unamortized patent with a useful life of 5 years.
In consolidation at December 31, 2011, what net adjustment is necessary for
Hogan's Patent account?
54. Pell Company acquires 80% of Demers Company for $500,000 on January 1,
2010. Demers reported common stock of $300,000 and retained earnings of
$210,000 on that date. Equipment was undervalued by $30,000 and buildings
were undervalued by $40,000, each having a 10-year remaining life. Any excess
consideration transferred over fair value was attributed to goodwill with an
indefinite life. Based on an annual review, goodwill has not been impaired.
Demers earns income and pays dividends as follows:
Assume the equity method is applied.
Compute Pell's investment in Demers at December 31, 2010.
55. Pell Company acquires 80% of Demers Company for $500,000 on January 1,
2010. Demers reported common stock of $300,000 and retained earnings of
$210,000 on that date. Equipment was undervalued by $30,000 and buildings
were undervalued by $40,000, each having a 10-year remaining life. Any excess
consideration transferred over fair value was attributed to goodwill with an
indefinite life. Based on an annual review, goodwill has not been impaired.
Demers earns income and pays dividends as follows:
Assume the equity method is applied.
Compute Pell's investment in Demers at December 31, 2011.
56. Pell Company acquires 80% of Demers Company for $500,000 on January 1,
2010. Demers reported common stock of $300,000 and retained earnings of
$210,000 on that date. Equipment was undervalued by $30,000 and buildings
were undervalued by $40,000, each having a 10-year remaining life. Any excess
consideration transferred over fair value was attributed to goodwill with an
indefinite life. Based on an annual review, goodwill has not been impaired.
Demers earns income and pays dividends as follows:
Assume the equity method is applied.
Compute Pell's investment in Demers at December 31, 2012.
57. Pell Company acquires 80% of Demers Company for $500,000 on January 1,
2010. Demers reported common stock of $300,000 and retained earnings of
$210,000 on that date. Equipment was undervalued by $30,000 and buildings
were undervalued by $40,000, each having a 10-year remaining life. Any excess
consideration transferred over fair value was attributed to goodwill with an
indefinite life. Based on an annual review, goodwill has not been impaired.
Demers earns income and pays dividends as follows:
Assume the equity method is applied.
Compute Pell's income from Demers for the year ended December 31, 2010.
58. Pell Company acquires 80% of Demers Company for $500,000 on January 1,
2010. Demers reported common stock of $300,000 and retained earnings of
$210,000 on that date. Equipment was undervalued by $30,000 and buildings
were undervalued by $40,000, each having a 10-year remaining life. Any excess
consideration transferred over fair value was attributed to goodwill with an
indefinite life. Based on an annual review, goodwill has not been impaired.
Demers earns income and pays dividends as follows:
Assume the equity method is applied.
Compute Pell's income from Demers for the year ended December 31, 2011.
59. Pell Company acquires 80% of Demers Company for $500,000 on January 1,
2010. Demers reported common stock of $300,000 and retained earnings of
$210,000 on that date. Equipment was undervalued by $30,000 and buildings
were undervalued by $40,000, each having a 10-year remaining life. Any excess
consideration transferred over fair value was attributed to goodwill with an
indefinite life. Based on an annual review, goodwill has not been impaired.
Demers earns income and pays dividends as follows:
Assume the equity method is applied.
Compute Pell's income from Demers for the year ended December 31, 2012.
60. Pell Company acquires 80% of Demers Company for $500,000 on January 1,
2010. Demers reported common stock of $300,000 and retained earnings of
$210,000 on that date. Equipment was undervalued by $30,000 and buildings
were undervalued by $40,000, each having a 10-year remaining life. Any excess
consideration transferred over fair value was attributed to goodwill with an
indefinite life. Based on an annual review, goodwill has not been impaired.
Demers earns income and pays dividends as follows:
Assume the equity method is applied.
Compute the non-controlling interest in the net income of Demers at December
31, 2010.
61. Pell Company acquires 80% of Demers Company for $500,000 on January 1,
2010. Demers reported common stock of $300,000 and retained earnings of
$210,000 on that date. Equipment was undervalued by $30,000 and buildings
were undervalued by $40,000, each having a 10-year remaining life. Any excess
consideration transferred over fair value was attributed to goodwill with an
indefinite life. Based on an annual review, goodwill has not been impaired.
Demers earns income and pays dividends as follows:
Assume the equity method is applied.
Compute the non-controlling interest in the net income of Demers at December
31, 2011.
