Chapter 4: 26, 41

26
a. Acquisition Cost 594,000
Book Value 400,000
Fair Value in
Excess of Book
Value 194,000
Allocations
Patent 140,000
Land 10,000
Buildings 30,000
Goodwill 14,000 194,000
TOTAL -

Annual Excess Amortization

Excess
Amortizati
Life on
Patent 140,000 5 28,000
Land 10,000 - -
Buildings 30,000 10 3,000
180,000 31,000

Revenues 1,500,000
Expenses 1,031,000
Net Income 469,000
NCI in Sawyer's Income
Controlling 50,700
Interest in
Consolidated
Net Income 418,300

b. Revenues 1,350,000
Expenses 923,250
Net Income 426,750
NCI in Sawyer's Income
Controlling 38,025
Interest in
Consolidated
Net Income 388,725

41
a. Acquisition Price 1,750,000
Book Value 1,300,000
FV in Excess of BV 450,000
To Customer Contract 400,000
Goodwill 50,000
b. 2015 Income 142,500
Amortization 95,000
Equity in Earnings of Sysing 47,500

FV 262,500
Acquisition Pric 184,500
Net Income 15,000
Dividends (4,500) 195,000
Gain on Sale 67,500

Acquisition 184,500
Net Income 15,000
Dividends (4,500)
Investment in Sysinger, 12/3 195,000
Gain on Sale 67,500
FV 1,400,000
Investment in Sysinger, 1/1 1,662,500
Net Income 142,500
Amortization (95,000)
Dividends (38,000)
Investment in Sysinger 1,672,000

S
Common Stock 500,000
APIC 200,000
Retained Earnings, 1/1 600,000
Investment inSysinger 1,235,000
NCI in Sysinger 65,000

A
Cusomter Contract 400,000
Goodwill 50,000
Investment in Sysinger 427,500
NCI in Sysinger 22,500

I
Equity in Subearnings 47,500
Investment in Sysinger 47,500

D
Investment in Sysinger 38,000
Dividends Declared 38,000

E
Amortization Expense 100,000
Cusomer Contract 100,000
 Allan and Sysinger
Consolidated Worksheet
Consolidated Entries

Allan Sysinger Debit Credit NCI

Revenues (931,000) (380,000)
Operating expenses 615,000 230,000 100,000
Gain on revaluation of Investment in
Sysinger (67,500) -
Consolidated net income
NCI in Sysinger's income 100,000
47,500 (2,500)
Allan's portion of conslidated net income

Retained earnings, 1/1 (965,000) (600,000)

Net income (431,000) (150,000)
Dividends declared 140,000 40,000 38,000 2,000
Retained earnings, 12/31

Current assets 288,000 540,000

PPE 826,000 590,000
Patented technology 850,000 370,000
Customer contract - - 400,000 100,000
Goodwill 50,000
Total assets

Liabilities ### (90,000)

Common stock (900,000) (500,000)
APIC (180,000) (200,000)
Retained earnings 12/31 ### (710,000)
NCI from S and A (65,000)
(22,500) (87,500)
NCI in Sysinger, 12/31 (88,000)
Total liabilities and equities
Consolidat
ed Totals
###
945,000

(67,500)
(433,500)

2,500
(431,000)

(965,000)
(431,000)
140,000
###

828,000
1,416,000
###
300,000
50,000
3,814,000

###
(900,000)
(180,000)
###

(88,000)
###