Advanced Accounting Chapter 2 (Recording the acquisition of a company)

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Series List:

Book: Advanced Accounting 10th edition
Authors: Hoyle, Schaefer, Doupnik
Publisher: Mcgraw-Hill / Irwin

Chapter 2 "Consolidation of Financial information"
Problem 2-21 (it's 2-16 in the 9th edition book, btw)


Here's another problem in advanced accounting.

Also, note that:
Excess = PMT - NIA
and in this problem we see that GW = Excess
Sometimes Excess is found by taking PMT - BV and then it gets split off to other assets before it becomes GW. I call that Excess Naive (En). En is useful for determining elimination entries (see ch. 3).
En = PMT - BV


Also note that, if you didn't buy 100% of the company, you need to add an additional calculation, but that doesn't appear in this chapter so I skipped it. (you would use TAB or implied value instead of PMT to find Excess. Implied value = PMT / %ownership or TAB = PMT + FV of minority stock, or other stuff (see later chapters).

In Part two, the answer should be the same as in part one, except for Cash (credit for 110k), GW (there's no GW), and Gain on Bargain Purchase (credit for 10k)

[Cathode]

@ScottSilver1 sure, I got one uploading now. (17% complete... I forgot to encrypt it before transfer, lol. Give it half an hour or so.)