Scribd
Upload
73 views5 pages

Gibson Keller Normal

- Gibson acquired NCI for $480,000, with NCI's book value being $630,000. Gibson also acquired a customer list valued at $170,000 with a life of 20 years. - In 2021, Gibson transferred land worth $80,000 that it had purchased for $160,000, recognizing a $80,000 gain. It also transferred its investment in Keller. - For 2021, Gibson reported a consolidated net loss of $205,480, with $50,320 attributable to NCI. Keller reported a net loss of $140,000.

Uploaded by

Jalaj Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
73 views5 pages

Gibson Keller Normal

- Gibson acquired NCI for $480,000, with NCI's book value being $630,000. Gibson also acquired a customer list valued at $170,000 with a life of 20 years. - In 2021, Gibson transferred land worth $80,000 that it had purchased for $160,000, recognizing a $80,000 gain. It also transferred its investment in Keller. - For 2021, Gibson reported a consolidated net loss of $205,480, with $50,320 attributable to NCI. Keller reported a net loss of $140,000.

Uploaded by

Jalaj Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 5

acquired 60%

for 480000
NCI 320000
book valuw 630000
list 170000 20 years

land 80000 for 160000

2020
costing 154000
for 220000

2021
transfers 270000
cost 175500

inventory 20%

owes 40000

Gibson Keller
Sales -870000 -570000
Cost of goods sold 570000 370000
operating expenses 170000 60000
Equity in earnings of keller -84000
Net income -214000 -140000
Retained earnings 1/1/21 -1186000 -655000
Net income -214000 -140000
Dividends declared 150000 60000
Retained earnings 12/31/21 -1250000 -735000
Cash 176000 80000
Accounts receivable 370000 480000
Inventory 460000 390000
Investment in keller 819000
land 180000 460000
Buildings and equipment(net) 503000 370000
Total assets 2508000 1780000
Liabilities -598000 -585000
common stock -660000 -390000
Additional paid in capital -70000
Retained earnigns 12/31/21 -1250000 -735000
Total liabilities and equities -2508000 -1780000

a
b building 95000 cost 210000 for
life 10 years
Year 2020 2021
Transfer price 220000 270000
Cost 154000 175500
Profit 66000 94500
% in inventory 20% 20%
Deffered Profit 13200 18900
Kellers share 7920 11340
NCI share 5280 7560

Net income of keller 140000


Add:deferred unrealised gain on inventory 2020 13200
Less:deferred unrealised gain on inventory 2021 -18900
Less:amortization expense 2021 -8500
Adjusted net income 125800
%share of NCI 40.0%
NCI share 50320

Net income of keller 140000


Equity earnings of Keller 84000

Consideration transferred 480000


NCI Fair value 320000
Total fair value 800000
Book value -630000
Excess 170000
Allocated to Life Amortization
Customer list 170000 20 years 8500

Customer list as on 1/1/2020 170000


less:amortization expense-2020 -8500
Value as on 1/1/2021 161500

Sale price pf land 160000


bookvalue of land 80000
Gain on sale of land 80000

170000
Consolidated worksheet
Gibson Keller Debit Credit NCI
Sales -870000 -570000 270000
Cost of goods sold 570000 370000 18900 283200
operating expenses 170000 60000 8500
Equity in earnings of keller -84000 84000
Net income -214000 -140000
Consolidated net income
Net income attributable to NCI -50320
To Gibson company
Retained earnings-Gibson 1/1/21 -1186000
Retained earnings-Keller 1/1/21 -655000 655000
Net income -214000 -140000
Dividends declared 150000 60000 36000 24000
Retained earnings 12/31/21 -1250000 -735000
Cash 176000 80000
Accounts receivable 370000 480000 40000
Inventory 460000 390000 18900
Investment in keller 819000 36000
Trademark 161500 8500
land 180000 460000 80000
Buildings and equipment(net) 503000 370000
Total assets 2508000 1780000
Liabilities -598000 -585000 40000
common stock -660000 -390000 390000
Additional paid in capital -70000 70000
NCI Keller 1/1
NCI Keller 12/31
Retained earnigns 12/31/21 -1250000 -735000
Total liabilities and equities -2508000 -1780000 1733900 466600

Common stock 390000 234000 156000


Additional paid in capital 70000 42000 28000
276000 184000
Consolidated totals
-1170000
675700
238500
0

-255800
50320
-205480
-1186000
0
-205480
150000
-1541480
256000
810000
831100
0
153000
560000
873000
3483100
-1143000
-660000
0

-1541480

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy