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Edmar D.

Bandoja
P14-10 a)
Determination and Allocation of Excess Schedule
Parent (100%) NCI (0%)
Total Consideration 542,000 542,000 -
Less: Book value of Interest
Common Stock 200,000
Retained Earnings 470,000
670,000 670,000 180,000

Excess of Consideration over BV (128,000) (128,000)


Allocation: Adj of Net Assets BV to FV
Inventory (10,000)
Land (40,000)
Equipment 20,000
Long-term Investment (15,000)
(45,000) (45,000)

Goodwill/(Gain) (173,000) (173,000) -


100.00% 0.00%

P14-11 2)
Determination and Allocation of Excess Schedule
Parent (100%) NCI (0%)
Total Consideration 1,900,000 1,900,000 -
Less: Book value of Interest
Common Stock 600,000
Retained Earnings 840,000
1,440,000 1,440,000 -

Excess of Consideration over BV 460,000 460,000 -


Allocation: Adj of Net Assets BV to FV
Land (100,000)
Building (200,000)
Bonds Payable (discount) (40,000)
Equipment (20,000)
(360,000) (360,000) -

Goodwill/(Gain) 100,000 100,000 -


P14-10 b)
Perez Company and Subsidiary
Consolidated Working Paper
January 2, 2017

Perez Santos Eliminations and Adjustments Conso-


Company Company Debit Credit lidated
Assets
Cash 100,000 100,000 200,000
Accounts receivable 200,000 150,000 350,000
Inventory 150,000 130,000 (2) 10,000 290,000
Land 50,000 80,000 (2) 40,000 170,000
Equipment 300,000 200,000 (2) 20,000 480,000
Investment in Santos Company 542,000 (2) 128,000 (1) 670,000
Long-term investment 100,000 125,000 (2) 15,000 240,000
Total 1,442,000 785,000 1,730,000

Liabilities & Equity


Accounts payable 175,000 115,000 290,000
Common stock:
Perez 400,000 400,000
Santos 200,000 (1) 200,000
Additional paid-in capital
Perez 200,000 200,000
Retained earnings
Perez 667,000 (2) 173,000 840,000
Santos 470,000 (1) 470,000
Total 1,442,000 785,000 863,000 863,000 1,730,000

Entries:
Common Stock - Santos 200,000
Retained Earnings - Santos 470,000
Investment in Santos 670,000
#
Inventory 10,000
Land 40,000
Investment in Santos 128,000
Long-term investment 15,000
Equipment 20,000
Retained earnings - Perez 173,000
#

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