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Homework answers / question archive / Power Company owns 90 percent of Pleasantdale Dairy’s stock
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Power Company owns 90 percent of Pleasantdale Dairy’s stock. The balance sheets of the two companies immediately after the Pleasantdale acquisition showed the following amounts: |
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Power |
Pleasantdale Dairy |
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Assets |
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Cash & Receivables |
$ |
140,000 |
$ |
77,000 |
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Inventory |
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215,000 |
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97,000 |
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Land |
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89,000 |
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54,000 |
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Buildings & Equipment (net) |
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402,000 |
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240,000 |
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Investment in Pleasantdale Stock |
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261,900 |
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Total Assets |
$ |
1,107,900 |
$ |
468,000 |
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Liabilities & Stockholders’ Equity |
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Current Payables |
$ |
60,000 |
$ |
22,000 |
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Long-Term Liabilities |
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259,900 |
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175,000 |
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Common Stock |
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399,000 |
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69,000 |
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Retained Earnings |
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389,000 |
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202,000 |
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Total Liabilities & Stockholders’ Equity |
$ |
1,107,900 |
$ |
468,000 |
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The fair value of the noncontrolling interest at the date of acquisition was determined to be $29,100. The full amount of the increase over book value is assigned to land held by Pleasantdale. At the date of acquisition, Pleasantdale owed Power $12,000 plus $900 accrued interest. Pleasantdale had recorded the accrued interest, but Power had not. |
Prepare a consolidated balance sheet worksheet.
