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Slim Corporation's Balance Sheet at January 1, 20X7, Reflected The Following Balances

Inventory, land, buildings and equipment will be reported at fair value based on an acquisition. Goodwill of $45,500 was also calculated. The fair value of the acquisition was $562,500, which exceeded the book value of $430,000, resulting in $132,500 of fair value in excess of book value. This excess was allocated to inventory ($20,000), land (-$10,000), buildings and equipment ($77,000), and goodwill ($45,500). The investment in Slim Corporation will be eliminated. Non-controlling interest was valued at $112,500.

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Kailash Kumar
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766 views1 page

Slim Corporation's Balance Sheet at January 1, 20X7, Reflected The Following Balances

Inventory, land, buildings and equipment will be reported at fair value based on an acquisition. Goodwill of $45,500 was also calculated. The fair value of the acquisition was $562,500, which exceeded the book value of $430,000, resulting in $132,500 of fair value in excess of book value. This excess was allocated to inventory ($20,000), land (-$10,000), buildings and equipment ($77,000), and goodwill ($45,500). The investment in Slim Corporation will be eliminated. Non-controlling interest was valued at $112,500.

Uploaded by

Kailash Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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1.

INVENTORY Will be reported at fair value=$146000

2.Land will be reported at fair value=$76000

3.buildings and equipment - also reported at fair value-$562000

4.goodwill=$45500

Fair value of acquisition(450000+112500) 562500


Book value 430000
(240000+190000)
Fair value in excess of book value 132500
Allocated to specific accounts
Inventory 20000
(146000-126000)
Land -10000
(76000-86000)
Buildings and equipment 77000
(562000-485000)
goodwill 45500

5.Investment in slim corporation-none will be reported the balance in investment account is eliminated

6.Non controlling interest at fair value=$112500

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