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Laurensius Adrian Wahyu Setiaji - 1402204311 - Latihan Soal P4.2

1) Liam AB acquired 80% interest in Theo AB for $10 million, valuing Theo AB at $12.5 million. 2) The consolidated financial statements combine the income statements, retained earnings statements, and balance sheets of Liam AB and its 80% owned subsidiary Theo AB for the year ended December 31, 2014. 3) Adjustments are made to eliminate intercompany transactions and account for the noncontrolling 20% interest in Theo AB.

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299 views6 pages

Laurensius Adrian Wahyu Setiaji - 1402204311 - Latihan Soal P4.2

1) Liam AB acquired 80% interest in Theo AB for $10 million, valuing Theo AB at $12.5 million. 2) The consolidated financial statements combine the income statements, retained earnings statements, and balance sheets of Liam AB and its 80% owned subsidiary Theo AB for the year ended December 31, 2014. 3) Adjustments are made to eliminate intercompany transactions and account for the noncontrolling 20% interest in Theo AB.

Uploaded by

Laurensius Adrian Wahyu Setiaji
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 XLSX, PDF, TXT or read online on Scribd
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Nama Laurensius Adrian Wahyu Setiaji

NIM 1402204311
Kelas AK-44-08

P4-2

Preliminary computations
Purchase Price for 80% interest acquired
Implied fair value of Theo AB ($10.000.000/80%)
Book value of Theo's AB net assets
Allocated to goodwill
Noncontrolling interest share:
20% of Theo AB net income ($1.500.000 × 20%)
Beginning noncontrolling interest:
20% of Beginning implied fair value of Theo
($12.500.000 × 20%)

LIAM AB AND SUBSIDIARY CONSOLIDATION WORKPAPER FOR THE YEAR ENDED DECEMBER
Liam AB Theo AB

Income Statement
Sales $ 67,000 $ 30,500
Income from Theo AB $ 1,200
Cost of sales $ -42,000 $ -25,000
Expenses $ -21,900 $ -4,000
Noncontrolling interest share
Controlling share of net income $ 4,300 $ 1,500
Retained Earnings Statement
Retained earnings - Liam AB $ 11,600
Retained earnings - Theo AB $ 8,000
Controlling share of net income $ 4,300 $ 1,500
Dividends $ -3,000 $ -500

Retained Earnings - December 31 $ 12,900 $ 9,000

Balance Sheet
Cash $ 800 $ 600
Accounts receivable - net $ 1,300 $ 800
Dividends receivable $ 400
Inventories $ 2,600 $ 400
Other current assets $ 1,200 $ 1,800
Land $ 3,000 $ 4,200
Building - net $ 3,200 $ 3,600
Equipment - net $ 2,200 $ 2,400
Investment in Theo AB $ 10,800

Goodwill
Total Assets $ 25,500 $ 13,800

Accounts payable $ 1,000 $ 400


Dividends payable $ 2,500 $ 500
Notes payable $ 4,100 $ 1,900
Capital Stock, $10 par $ 5,000 $ 2,000
Retained earnings $ 12,900 $ 9,000
$ 25,500 $ 13,800
Noncontrolling interest January 1
Noncontrolling interest December 31
Total liabilities and equities
$ 10,000,000
$ 12,500,000
$ 10,000,000
$ 2,500,000

$ 300,000

$ 2,500,000

E YEAR ENDED DECEMBER 31, 2014 (in thousands)


Adjustments and Eliminations
Consolidated Statements
Debits Credits

$ 97,500
$ 1,200
$ -67,000
$ -25,900
$ 300 $ -300
$ 4,300

$ 11,600
$ 8,000
$ 4,300
$ 400 $ -3,000
$ 100
$ 12,900

$ 1,400
$ 2,100
$ 400
$ 3,000
$ 3,000
$ 7,200
$ 6,800
$ 4,600
$ 800
$ 10,000
$ 2,500 $ 2,500
$ 30,600

$ 1,400
$ 400 $ 2,600
$ 6,000
$ 2,000 $ 5,000
$ 12,900

$ 2,500
$ 200 $ 2,700
$ 30,600

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