ch 05 consolidation of less than wholly owned subsidiaries
Chapter 05
Consolidation of Less-than-Wholly Owned Subsidiaries
Multiple Choice Questions Bristle Corporation acquired 75 percent of Silver Corporation's common stock on December 31, 2008, for $300,000. The fair value of the noncontrolling interest at that date was determined to be $100,000. Silver's balance sheet immediately before the combination reflected the following balances:
A careful review of the fair value of Silver's assets and liabilities indicated that inventory, land, and buildings and equipment (net) had fair values of $65,000, $100,000, and, $300,000 respectively. Goodwill is assigned proportionately to Bristle and the noncontrolling shareholders. 1. Based on the preceding information, what amount of inventory will be included in the consolidated balance sheet immediately following the acquisition?
A. $0
B. $65,000
C. $70,000
D. $60,000 2. Based on the preceding information, what amount of land will be included in the consolidated balance sheet immediately following the acquisition?
A. $0
B. $10,000
C. $90,000
D. $100,000 3. Based on the preceding information, what amount of buildings and equipment (net) will be included in the consolidated balance sheet immediately following the acquisition?
A. $0
B. $50,000
C. $250,000
D. $300,000 4. Based on the preceding information, what amount of goodwill will be reported in the consolidated balance sheet immediately following the acquisition?
A. $0
B. $120,000
C. $65,000
D. $20,000 5. Based on the preceding information, what amount will be reported as investment in Silver Corporation stock in the consolidated balance sheet immediately following the acquisition?
A. $0
B. $210,000
C. $300,000
D. $400,000 6. Based on the preceding information, what amount will be reported as noncontrolling interest in the consolidated balance sheet immediately following the acquisition?
A. $0
B. $70,000
C. $83,750
D. $100,000 On January 1, 2009, Gulliver Corporation acquired 80 percent of
Consolidation of Less-than-Wholly Owned Subsidiaries
Multiple Choice Questions Bristle Corporation acquired 75 percent of Silver Corporation's common stock on December 31, 2008, for $300,000. The fair value of the noncontrolling interest at that date was determined to be $100,000. Silver's balance sheet immediately before the combination reflected the following balances:
A careful review of the fair value of Silver's assets and liabilities indicated that inventory, land, and buildings and equipment (net) had fair values of $65,000, $100,000, and, $300,000 respectively. Goodwill is assigned proportionately to Bristle and the noncontrolling shareholders. 1. Based on the preceding information, what amount of inventory will be included in the consolidated balance sheet immediately following the acquisition?
A. $0
B. $65,000
C. $70,000
D. $60,000 2. Based on the preceding information, what amount of land will be included in the consolidated balance sheet immediately following the acquisition?
A. $0
B. $10,000
C. $90,000
D. $100,000 3. Based on the preceding information, what amount of buildings and equipment (net) will be included in the consolidated balance sheet immediately following the acquisition?
A. $0
B. $50,000
C. $250,000
D. $300,000 4. Based on the preceding information, what amount of goodwill will be reported in the consolidated balance sheet immediately following the acquisition?
A. $0
B. $120,000
C. $65,000
D. $20,000 5. Based on the preceding information, what amount will be reported as investment in Silver Corporation stock in the consolidated balance sheet immediately following the acquisition?
A. $0
B. $210,000
C. $300,000
D. $400,000 6. Based on the preceding information, what amount will be reported as noncontrolling interest in the consolidated balance sheet immediately following the acquisition?
A. $0
B. $70,000
C. $83,750
D. $100,000 On January 1, 2009, Gulliver Corporation acquired 80 percent of