ACC 407-W3 - Assignment - Consolidation Problems.DOCX

ACC 407-W3 - Assignment - Consolidation Problems

 

“Consolidation Problems”

Theresa M. Odom

ACC 407

Instructor Bruce Geddes

December 18, 2014


 

Consolidation Problems

            P5-38) Comprehensive Problem: Differential Apportionment

Mortar Corporation acquired 80 percent ownership of Granite Company on January 1, 20X7, for $173,000.  At that date, the fair value of the non-controlling interest was $43,250.  The trial balances for the two companies on December 31, 20X7, included the following amounts:

Item
Mortar Corporation
Granite Company
 
Debit
Credit
Debit
Credit
Cash
$38,000
 
$25,000
 
Accounts Receivable
$50.000
 
$55,000
 
Inventory
$240,000
 
$100,000
 
Land
$80,000
 
$20,000
 
Buildings & Equipment
$500,000
 
$150,000
 
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