osada Company acquired 7,000 of the 10,000 outstanding shares of Sabathia Company on January 1, 2016, for $840,000. The subsidiary’s total fair value was assessed at $1,200,000 although its book value on that date was $1,130,000. The $70,000 fair value in excess of Sabathia’s book value was assigned to a patent with a five-year remaining life. On January 1, 2018, Posada reported a $1,085,000 equity method balance in the Investment in Sabathia Company account. On October 1, 2018, Posada sells 1,000 shares of the investment for $191,000. During 2018, Sabathia reported net income of $120,000 and declared dividends of $40,000. These amounts are assumed to have occurred evenly throughout the year. How should Posada report the 2018 income that accrued to the 1,000 shares prior to their sale? (Do not round your intermediate calculations.) What is the effect on Posada’s financial statements from this sale of 1,000 shares? (Do not round your intermediate calculations.)

On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $829,500 in cash and equity securities. The remaining 30 percent of Atlanta’s shares traded closely near an average price that totaled $355,500 both before and after Truman’s acquisition.

In reviewing its acquisition, Truman assigned a $127,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years.

The following financial information is available for these two companies for 2018. In addition, the subsidiary’s income was earned uniformly throughout the year. The subsidiary declared dividends quarterly.

On January 1, 20X8, Patriot Company acquired 100 percent of Stryder Company for $220,000 cash. The trial balances for the two companies on December 31, 20X8, included the following amounts:

On the acquisition date, Stryder reported net assets with a book value of $170,000. A total of $10,000 of the acquisition price is applied to goodwill, which was not impaired in 20X8. Stryder's depreciable assets had an estimated economic life of 10 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment. Patriot used the equity method in accounting for its investment in Stryder. Analysis of receivables and payables revealed that Stryder owed Patriot $10,000 on December 31, 20X8.

25) Based on the information provided, the differential associated with this acquisition is:

A) $36,000.

B) $40,000.

C) $10,000.

D) $50,000.

26) Based on the information provided, the beginning differential assigned to buildings and equipment is:

A) $50,000.

B) $40,000.

C) $10,000.

D) $36,000.

27) Based on the information provided, the annual amortization of the differential assigned to buildings and equipment is:

A) $5,000.

B) $4,000.

C) $10,000.

D) $3,600.

28) Based on the information provided, what amount of retained earnings will be reported in the consolidated financial statements for the year?

A) $331,000

B) $110,000

C) $441,000

D) $456,000

29) Based on the information provided, what amount of net income will be reported in the consolidated financial statements for the year?

A) $226,000

B) $55,000

C) $230,000

D) $171,000

30) Based on the information provided, what amount of total assets will be reported in the consolidated balance sheet for the year?

A) $895,000

B) $801,000

C) $723,000

D) $1,111,000

I bolded each answer. Please expain to me how to get each answer in clear and neat steps using math. thank you

Presented below is information related to Sunland Company.

1. On July 6, Sunland Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is:

Sunland Company gave 12,000 shares of its $100 par value common stock in exchange. The stock had a market price of $168 per share on the date of the purchase of the property.

2. Sunland Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. (Prepare consolidated entry for all transactions below.)

3. On December 20, the company paid cash for equipment, $286,000, subject to a 2% cash discount, and freight on equipment of $11,550.

Prepare entries on the books of Sunland Company for these transactions. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

On January 1, 2013 Schaepman company acquired 100% of Bruinisse company by issuing 10,000 shares of its € 10 par value voting stock (having a fair value of € 13 per share). At that date Bruinisse had a stockholders’ equity of € 105,000. Land shown on Bruinisse’s accounting records was undervalued by € 10,000. Equipment with a 5-year remaining life was undervalued by € 5,000. A secret formula developed by Bruinisse was appraised at € 20,000 with an estimated life of 20 years. Furthermore, from the point of view of Schaepman, a deferred liability that was not on the accounting records of Bruinisse was estimated to have a fair value of € 10,000., By the end of 2013 this deferred liability did no longer exist.

Following are the separate financial statements for the two companies for the year ending December 31, 2017. On that date Bruinisse had an account payable to Schaepman of € 3,000.

Question 1

Explain how Schaepman derived the € 66,000 balance in the Subsidiary earnings account.

Question 2

Prepare a worksheet to consolidate the financial information for these two companies.

On January 1, 2009, Father Company acquired an 80 percent interest in Sun Company for $425,000. The acquisition-date fair value of the 20 percent noncontrolling interest's ownership shares was $102,500. Also as of that date, Sun reported total stockholders' equity of $400,000: $100,000 in common stock and $300,000 in retained earnings. In setting the acquisition price, Father appraised four accounts at values different from the balances reported within Sun's financial records.

Buildings (8-year life) Undervalued by $20,000
Land. Undervalued by $50,000
Equipment (5-year life) Undervalued by $12,500
Royalty agreement (20-year life) Not recorded, valued at $30,000

As of December 31, 2013, the trial balances of these two companies are as follows:

Father Sun Company Company

Debits
Current assets. $ 605,000 $ 280,000
investment in the sun company 425,000 0
Land 200,000 300,000
Building (net) 640,000 290,000
Equipment (net) 380,000 160,000
Expenses 550,000 190,000
Dividends 90,000 20,000
Total debits. $2,890,000 $1,240,000

Credits
Liabilities. $ 910,000 $ 300,000
Common stock 480,000 100,000
Retained earnings,1/1/13 704,000 480,000
Revenues 780,000 360,000
Total credits. $2,890,000 $1,240,000


Included in these figures is a $20,000 debt that Sun owes to the parent company. No goodwill impairments have occurred since the Sun Company acquisition.

Required

a. Determine consolidated totals for Father Company and Sun Company for the year 2013.
b. Prepare worksheet entries to consolidate the trial balances of Father Company and Sun Company for the year 2013.
c. Assume instead that the acquisition-date fair value of the noncontrolling interest was $112,500. What balances in the December 31, 2013, consolidated statements would change?

On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $763,175 in cash and equity securities. The remaining 30 percent of Atlanta’s shares traded closely near an average price that totaled $327,075 both before and after Truman’s acquisition.

In reviewing its acquisition, Truman assigned a $104,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years.

The following financial information is available for these two companies for 2018. In addition, the subsidiary’s income was earned uniformly throughout the year. The subsidiary declared dividends quarterly.

How did Truman allocate Atlanta’s acquisition-date fair value to the various assets acquired and liabilities assumed in the combination?

How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests?

How did Truman derive the Investment in Atlanta account balance at the end of 2018?

Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018. At year-end, there were no intra-entity receivables or payables.

Required A

Required B

Required C

Required D

How did Truman allocate Atlanta’s acquisition-date fair value to the various assets acquired and liabilities assumed in the combination?

B

Required B

Required C

Required D

How did Truman allocate the goodwill from the acquisition across the controlling and noncontrolling interests?

C

Required C

Required D

How did Truman derive the Investment in Atlanta account balance at the end of 2018?

On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $763,175 in cash and equity securities. The remaining 30 percent of Atlanta’s shares traded closely near an average price that totaled $327,075 both before and after Truman’s acquisition. In reviewing its acquisition, Truman assigned a $104,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years.The following financial information is available for these two companies for 2018. In addition, the subsidiary’s income was earned uniformly throughout the year. The subsidiary declared dividends quarterly.

Prepare a worksheet to consolidate the financial statements of these two companies as of December 31, 2018.

Presented below is information related to Blossom Company.

1. On July 6, Blossom Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is:

Land $372,000

Buildings 1,116,000

Equipment 744,000

Total $2,232,000

Blossom Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $171 per share on the date of the purchase of the property.

2. Blossom Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. (Prepare consolidated entry for all transactions below.)

Repairs to building $107,860

Construction of bases for equipment to be installed later 135,500

Driveways and parking lots 131,060

Remodeling of office space in building, including new partitions and walls 162,550

Special assessment by city on land 19,750

3. On December 20, the company paid cash for equipment, $274,800, subject to a 2% cash discount, and freight on equipment of $11,540.

Prepare entries on the books of Blossom Company for these transactions