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Tugas 3 - AKL 1

1. The document contains financial statements and calculations for Mignonne and Petite as of December 31, 2016 on a consolidated basis. 2. It shows assets, liabilities, and equity for each company individually and on a consolidated basis, with eliminations for intercompany balances. 3. Calculations are shown for undervalued equipment in Petite that is being amortized over 5 years, as well as the resulting investment amount in Petite reported on Mignonne's balance sheet.

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Geroro D'Phoenix
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54 views

Tugas 3 - AKL 1

1. The document contains financial statements and calculations for Mignonne and Petite as of December 31, 2016 on a consolidated basis. 2. It shows assets, liabilities, and equity for each company individually and on a consolidated basis, with eliminations for intercompany balances. 3. Calculations are shown for undervalued equipment in Petite that is being amortized over 5 years, as well as the resulting investment amount in Petite reported on Mignonne's balance sheet.

Uploaded by

Geroro D'Phoenix
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Pangestu Jalu Bagaskoro

F0317079

E 3-1

1. C. Separate financial statements are reported


2. C. A purchases 75 percent of B’s voting common stock
3. B. Mahina is collateralized
4. C. Parent, affiliate, non-controlling interest, and non-controlling interest, respectively
5. A. It has an independent management board

E 3-2

1. D. The parent does not have control of the subsidiary


2. B. Prevent the use of off–balance sheet financing
3. D. Investments in consolidated subsidiaries
4. D. Equity in the subsidiary’s net assets held by stockholders other than the parent
5. A. The change in reporting entity is reported by restating the financial statements of all prior
periods presented as consolidated statements.
6. B. The subsidiary’s income less amortization of fair/book value differentials is multiplied by
the noncontrolling interest percentage.
7. C. Parent company’s retained earnings

E 3-3

1. C. $275,000
2. A. 0
3. A. $2,480,000
P 3-5

December 31, 2016

(In thousand) Mignonne Petite Debit Credit Consolidated


Balance Sheet
Assets
Cash $ 140 $ 70 $ 174
Receivable – net $ 300 $ 250 $ 550
Inventories $ 900 $ 850 $ 1,750
Land $ 500 $ 300 $ 800
Equipment – net $ 1,500 $ 1,200 $ 280 $ 2,980 (a)
Investment in Petite $ 2,786 $ 2830 (b) ( $ 44 )
Total Assets $ 6,090 $ 2,670 $ 6,210
Liabilities and Equity
Account Payable $ 500 $ 120 $ 620
Common Stock, $ 10 $ 4,000 $ 2,000 $ 4,000
Retained Earning $ 1,590 $ 550 $ 1,590
Total Liabilities and
$ 6,090 $ 2,670 $ 6,210
Stockholders’ Equity

Common stock – Petite (-SE) $ 2,000,000


Retained Earnings – Petite (-SE) $ 550,000
Excess in Amortization $ 236,000
Investment in Petites (-A) $ 2,786,000

$ 350,000
a. Equipment undervalue by: = $ 70,000 per year
5 Year
Undervalued equipment by 31st December 2016 = $ 350,000 - $ 70,000 = $ 280,000
Equipment by 31st December 2016 = $ 1,500,000 + $ 1,200,000 + $ 280,000 = $ 2,980,000

b. Common Stock $ 2,000,000


Retained Earnings $ 550,000
Undervalued Equipment $ 280,000
Investment in Petite $ 2,830,000

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