QuestionQuestion

Transcribed TextTranscribed Text

Nascent, Inc acquires 60% of Sea-Breeze Corporation for $414,000 cash on January 1, 2012. The remaining 40% of the Sea-Breeze shares traded near a total value of 276,000 both before andafter the acquisition date. No stock was issued after the acquisition date and no dividends were declared for 2012, 201 ,or 2014. On January 1, 2012, Sea-Breeze had the following assets and liabilities: Book Value Fair Value Current Assets 150,000 150,000 Land 200,000 200,000 Buildings (net)(6-year remaining life) 300,000 324,000 Equipment (net)(4 year remaining life) 300,000 320,000 Patent (10 year remaining life) 56,000 Liabilities (400,000) (400,000) Any excess over fair value is allocated to Goodwill with an indefinite life. The companies trial balances for the year ending December 31, 2015, are as follows: Nascent Sea-Breeze Revenues (600,000) (300,000) Operating Expense 410,000 210,000 Investmentincome (42,000) Net Income (232,000) (90,000) Retained earnings, 1/1/15 (700,000) (300,000) Net Income (232,000) (90,000) Dividends declared 92,000 70,000 Retained earnings, 12/31/15 (848,000) (320,000) Current Assets 330,000 100,000 Land 220,000 200,000 Buildings (net) 700,000 200,000 Equipment (net) 400,000 500,000 Investmenti in Sea- -Breeze 414,000 Total assets 2,064,000 1,000,000 Liabilities (500,000) (200,000) Common Stock (724,000) (480,000) Retained earnings, 12/31/15 (840,000) (320,000) Total liabilities and equities (2,064,000) (1,000,000) Use the information provided to answer the following questions Please show all work. 1. Consolidated Worksheet 2.a consolidated balance sheet 3. a consolidated income statement.

Solution PreviewSolution Preview

This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.

Accounting Problems
    $50.00 for this solution

    PayPal, G Pay, ApplePay, Amazon Pay, and all major credit cards accepted.

    Find A Tutor

    View available Accounting Tutors

    Get College Homework Help.

    Are you sure you don't want to upload any files?

    Fast tutor response requires as much info as possible.

    Decision:
    Upload a file
    Continue without uploading

    SUBMIT YOUR HOMEWORK
    We couldn't find that subject.
    Please select the best match from the list below.

    We'll send you an email right away. If it's not in your inbox, check your spam folder.

    • 1
    • 2
    • 3
    Live Chats