Accounting Chapter 4 Quiz Zigma
Question # 00545985
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Updated on: 06/14/2017 01:00 AM Due on: 06/14/2017
Chapter 4 Quiz
Zigma purchased 100% of Standard for $200K on January 1st 2XX1. The information below is from the December 31, 2XX1 accounts. At the
time of purchase all FMV of all assets and liabilities equal book value, except for the following
Description Book Value Fair Value Building $100,000 $130,000 10 Year Life 10,000 20,000 2 month life 5,000 20,000 Inventory
Land Any excess from the purchase price will be allocated to goodwill. Requirement: Determine what the Income from Sub and Investment in Sub’s
ending balance should be to balance the Financials. Complete all elimination entries and the Consolidate Worksheet.
Zigma purchased 100% of Standard for $200K on January 1st 2XX1. The information below is from the December 31, 2XX1 accounts. At the
time of purchase all FMV of all assets and liabilities equal book value, except for the following
Description Book Value Fair Value Building $100,000 $130,000 10 Year Life 10,000 20,000 2 month life 5,000 20,000 Inventory
Land Any excess from the purchase price will be allocated to goodwill. Requirement: Determine what the Income from Sub and Investment in Sub’s
ending balance should be to balance the Financials. Complete all elimination entries and the Consolidate Worksheet.
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/5
Solution: Accounting Chapter 4 Quiz Zigma