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Power Company owns 90 percent of Pleasantdale Dairy’s stock
|
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: |
|
|
Power |
Pleasantdale Dairy |
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|
Assets |
|
|
|
|
|
Cash & Receivables |
$ |
140,000 |
$ |
77,000 |
|
Inventory |
|
215,000 |
|
97,000 |
|
Land |
|
89,000 |
|
54,000 |
|
Buildings & Equipment (net) |
|
402,000 |
|
240,000 |
|
Investment in Pleasantdale Stock |
|
261,900 |
|
|
|
|
|
|
|
|
|
Total Assets |
$ |
1,107,900 |
$ |
468,000 |
|
|
|
|
|
|
|
Liabilities & Stockholders’ Equity |
|
|
|
|
|
Current Payables |
$ |
60,000 |
$ |
22,000 |
|
Long-Term Liabilities |
|
259,900 |
|
175,000 |
|
Common Stock |
|
399,000 |
|
69,000 |
|
Retained Earnings |
|
389,000 |
|
202,000 |
|
|
|
|
|
|
|
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.
Expert Solution
PFA
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