Calves becomes mature after six months.

On 28 February 2023, 500 calves were born.

On 30 May 2023, 900 mature cattle were sold.

Fair value per baby cattle (calf) per unit
2022- $26
2023-$30

Fair value per mature cattle per unit
2022-$36
2023-$40

Costs to sell or acquisition cost

Auctioneer’s fee
2022-$1.5
2023-2.0

New born calves on 28 February 2023

Sale of mature cattle on 30 May 2023

The fair value change of the calves and the mature cattle as at 30 June 2023

that is all the data

On December 18, 2017, Stephanie Corporation acquired 100 percent of a Swiss company for 4.0 million Swiss francs (CHF), which is indicative of book and fair value. At the acquisition date, the exchange rate was $1.00 = CHF 1. On December 18, 2017, the book and fair values of the subsidiary’s assets and liabilities were:

Stephanie prepares consolidated financial statements on December 31, 2017. By that date, the Swiss franc has appreciated to $1.10 = CHF 1. Because of the year-end holidays, no transactions took place prior to consolidation.

1. Determine the translation adjustment to be reported on Stephanie’s December 31, 2017, consolidated balance sheet, assuming that the Swiss franc is the Swiss subsidiary’s functional currency. What is the economic relevance of this translation adjustment?

2. Determine the remeasurement gain or loss to be reported in Stephanie’s 2017 consolidated net income, assuming that the U.S. dollar is the functional currency. What is the economic relevance of this remeasurement gain or loss?

On January 1, 2017, Ridge Road Company acquired 25 percent of the voting shares of Sauk Trail, Inc., for $4,100,000 in cash. Both companies provide commercial Internet support services but serve markets in different industries. Ridge Road made the investment to gain access to Sauk Trail's board of directors and thus facilitate future cooperative agreements between the two firms. Ridge Road quickly obtained several seats on Sauk Trail's board which gave it the ability to significantly influence Sauk Trail's operating and investing activities.

The January 1, 2017, carrying amounts and corresponding fair values for Sauk Trail's assets and liabilities follow:

Also as of January 1, 2017, Sauk Trail's computing equipment had a seven-year remaining estimated useful life. The patented technology was estimated to have a five-year remaining useful life. The trademark's useful life was considered indefinite. Ridge Road attributed to goodwill any unidentified excess cost.

During the next two years, Sauk Trail reported the following net income and dividends:

How much of Ridge Road's $4,100,000 payment for Sauk Trail is attributable to goodwill?

What amount should Ridge Road report for its equity in Sauk Trail's earnings on its income statements for 2017 and 2018?

What amount should Ridge Road report for its investment in Sauk Trail on its balance sheets at the end of 2017 and 2018?

On January 1, 2017, Ridge Road Company acquired 25 percent of the voting shares of Sauk Trail, Inc., for $4,100,000 in cash. Both companies provide commercial Internet support services but serve markets in different industries. Ridge Road made the investment to gain access to Sauk Trail's board of directors and thus facilitate future cooperative agreements between the two firms. Ridge Road quickly obtained several seats on Sauk Trail's board which gave it the ability to significantly influence Sauk Trail's operating and investing activities.

The January 1, 2017, carrying amounts and corresponding fair values for Sauk Trail's assets and liabilities follow:

Also as of January 1, 2017, Sauk Trail's computing equipment had a seven-year remaining estimated useful life. The patented technology was estimated to have a five-year remaining useful life. The trademark's useful life was considered indefinite. Ridge Road attributed to goodwill any unidentified excess cost.

During the next two years, Sauk Trail reported the following net income and dividends:

How much of Ridge Road's $4,100,000 payment for Sauk Trail is attributable to goodwill?

What amount should Ridge Road report for its equity in Sauk Trail's earnings on its income statements for 2017 and 2018?

What amount should Ridge Road report for its investment in Sauk Trail on its balance sheets at the end of 2017 and 2018?

Fanning Manufacturing Company was started on January 1, 2018, when it acquired $78,000 cash by issuing common stock. Fanning immediately purchased office furniture and manufacturing equipment costing $7,700 and $34,300, respectively. The office furniture had an 8-year useful life and a zero salvage value. The manufacturing equipment had a $3,100 salvage value and an expected useful life of four years. The company paid $11,200 for salaries of administrative personnel and $15,700 for wages to production personnel. Finally, the company paid $12,020 for raw materials that were used to make inventory. All inventory was started and completed during the year. Fanning completed production on 4,800 units of product and sold 3,850 units at a price of $15 each in 2018. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.)

***Please show me step by step***

C. Determine the amount of the ending inventory balance that would appear on the December 31, 2018, balance sheet. (Do not round intermediate calculations.)

D. Determine the amount of net income that would appear on the 2018 income statement.

E. Determine the amount of retained earnings that would appear on the December 31, 2018, balance sheet.

F. Determine the amount of total assets that would appear on the December 31, 2018, balance sheet.

Assume that, on January 1, 2019, P Company acquired a 70% interest in its subsidiary, S Company. The aggregate fair value of the controlling and noncontrolling interest was $400,000 in excess of S Company’s Stockholders’ Equity on the acquisition date. The parent uses the equity method to account for its investment in S company. The parent assigned the acquisition accounting premium (AAP) as follows:

P Company and S Company report the following financial statements at December 31, 2023:

15.       Based on the given financial statements, the computation of the pre-consolidation income (loss) from subsidiary of $74,000 reported by the parent includes a deduction for:

a.   $25,000 for excess attributable to depreciation and amortization

b.   $34,000 for excess attributable to depreciation and amortization

c.   $13,125 for 70% of dividends declared and paid by S Company

d.   $75,600 for 70% of the net income of subsidiary

16.       The December 31, 2023 pre-consolidation balance of the equity investment accounting equals $1,331,475 (i.e., 5 years subsequent to the acquisition).

On this date, the equity investment balance implicitly includes:

a.   Dividends, $121,290

b.   Goodwill, $60,000

c.   Goodwill, $48,000

d.   Unamortized AAP excluding Goodwill, $204,000

On January 1, 2018, Marshall Company acquired 100 percent of the outstanding common stock of Tucker Company. To acquire these shares, Marshall issued $283,000 in long-term liabilities and 20,000 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Marshall paid $20,500 to accountants, lawyers, and brokers for assistance in the acquisition and another $5,500 in connection with stock issuance costs.

Prior to these transactions, the balance sheets for the two companies were as follows:

Note: Parentheses indicate a credit balance.

In Marshall’s appraisal of Tucker, it deemed three accounts to be undervalued on the subsidiary’s books: Inventory by $8,300, Land by $23,200, and Buildings by $42,200. Marshall plans to maintain Tucker’s separate legal identity and to operate Tucker as a wholly owned subsidiary.

QUESTION: WHAT AMOUNT WILL BE FOR PAID-IN CAPITAL AND RETAINED EARNINGS?

Francisco Inc. acquired 100 percent of the voting shares of Beltran Company on January 1, 2017. In exchange, Francisco paid $883,500 in cash and issued 106,000 shares of its own $1 par value common stock. On this date, Francisco’s stock had a fair value of $12 per share. The combination is a statutory merger with Beltran subsequently dissolved as a legal corporation. Beltran’s assets and liabilities are assigned to a new reporting unit.

The following reports the fair values for the Beltran reporting unit for January 1, 2017, and December 31, 2018, along with their respective book values on December 31, 2018.

1. Prepare Francisco’s journal entry to record the assets acquired and the liabilities assumed in the Beltran merger on January 1, 2017.

2. On December 31, 2018, Francisco opts to forgo any goodwill impairment qualitative assessment and estimates that the total fair value of the entire Beltran reporting unit is $1,826,500. What amount of goodwill impairment, if any, should Francisco recognize on its 2018 income statement?

Harrier Ltd began operations on 1 July 2016. During the following year, the company acquired a tract of land, demolished the building on the land and built a new factory. Equipment was acquired for the factory and, in March 2017, the factory was ready. A gala opening was held on 18 March, with the local parliamentarian opening the factory. The first items were ready for sale on 25 March.

During this period, the following inflows and outflows occurred.

Required
Using the information provided, determine what assets Harrier Ltd should recognise and the amounts at which they would be recorded.