Transcribed 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.
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