Professional Documents
Culture Documents
INCOME STATEMENT
Sales
Dividend income
P COMPANY
ELIMINATION
DEBIT
CREDIT
S COMPANY
$
$
4,000,000
60,000
$
$
2,530,000
-
Total Revenue
Cos of Good Sold
Depreciation - Equipment
Other Expenses
4,060,000
$
$
$
2,310,000
120,000
1,000,000
$
$
$
3,430,000
$
$
630,000
-
$
$
630,000
200,000
RETAINED EARNINGS
1/1 Retained Earnings
P Company
2,077,000
630,000
(150,000)
S Company
Net income from above
Dividend Declared
P Company
S Company
31/12 Retained Earnings
BALANCE SHEET
Investment in S Company
Difference between implied and book value
Land
Equipment (Net)
Other Assets (Net)
Goodwill (Excess IV over BV)
Total
Liabilities
Common Stocks
P Company
S Company
Retained Earning from above
1/1 Non Controlling interest in net asset
Description
Purchase Price & Implied Value
(-) Net Asset Acquired
Common Stock
Retained Earnings
Excess Implied Value over Book Value
Assigned to :
Inventory
Equipment
Land
Distributed to Goodwill
CONSOLIDATED
BALANCE SHEET
$
$
6,530,000
-
2,530,000
6,530,000
1,600,000
30,000
700,000
$
$
$
3,910,000
180,000
1,700,000
2,330,000
5,790,000
200,000
-
$
$
740,000
(34,000)
706,000
2,121,000
$
$
706,000
$
(15,000) $
19,000 $
(150,000)
2,677,000
$
$
$
$
$
$
2,800,000
1,260,000
4,217,000
230,000
$
$
685,000
200,000
(75,000)
810,000
60,000
30,000
$
$
$
$
40,000
16,000
48,000
685,000
34,000
148,000
60,000
2,557,000
2,200,000
$
$
$
$
2,400,000
840,000
1,872,000
-
$
$
$
$
250,000
210,000
2,345,000
-
7,312,000
2,805,000
8,507,000
1,755,000
495,000
2,250,000
3,000,000
$
$
1,500,000
810,000
$
$
$
3,000,000
2,677,000
2,557,000
$
$
$
$
148,000
750,000
150,000
300,000
$
$
2,348,000
750,000
90,000
250,000
20,000
1,500,000
$
$
$
12,000
10,000
4,000
NON CONTROLLING
INTEREST
7,312,000
2,805,000
P Company
2,348,000
587,000
Total
2,935,000
$
$
1,200,000
548,000
$
$
300,000
137,000
$
$
1,500,000
685,000
1,748,000
437,000
2,185,000
600,000
150,000
750,000
NCI
$
$
$
(40,000) $
(240,000) $
(120,000) $
(10,000) $
(60,000) $
(30,000) $
(50,000)
(300,000)
(150,000)
$
$
200,000 $
(200,000) $
50,000 $
(50,000) $
250,000
(250,000)
587,000
561,000
580,000
580,000
8,507,000