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LL %23 SI Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Inc., on January 1, 2021, in exchange for $9,000,000 in cash. At the acquisition date, Eddy Tech's stockholders' equity was $7,200,000 including retained earnings of At the acquisition date, Angela prepared the following fair value allocation schedule for its newly acquired subsidiary: Consideration transferred Eddy s stockholder's equity Excess fair over book value to patented technology (5-year remaining life) to trade names (indefinite remaining life) to equipment (8-year remaining life) 000 0006 $1,800,000 $150,000 500,000 0000 000 00 000 00 0 At the end of 2021, Angela and Eddy Tech report the following amounts from their individually maintained account balances, before consideration of their parent-subsidiary relationship. Parentheses indicate a credit balance. Angela Eddy Tech Sales 000 008 000 000 4,200,000 Cost of goods sold Depreciation expense Amortization expense Other operating expenses 000 0000 53,750 000s (986, 250) Net income Required: Prepare a 2021 consolidated income statement for Angela and its subsidiary Eddy Tech. Assume that Angela, as a private company, elects to amortize goodwill over a 10-year period. Mc Graw < Prev 4 of 4 Type here to search 近。 dy SUI del f5 OLJ f3 144 3 %23 %3D 5. R ned WN A X

LL %23 SI Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Inc., on January 1, 2021, in exchange for $9,000,000 in cash. At the acquisition date, Eddy Tech's stockholders' equity was $7,200,000 including retained earnings of At the acquisition date, Angela prepared the following fair value allocation schedule for its newly acquired subsidiary: Consideration transferred Eddy s stockholder's equity Excess fair over book value to patented technology (5-year remaining life) to trade names (indefinite remaining life) to equipment (8-year remaining life) 000 0006 $1,800,000 $150,000 500,000 0000 000 00 000 00 0 At the end of 2021, Angela and Eddy Tech report the following amounts from their individually maintained account balances, before consideration of their parent-subsidiary relationship. Parentheses indicate a credit balance. Angela Eddy Tech Sales 000 008 000 000 4,200,000 Cost of goods sold Depreciation expense Amortization expense Other operating expenses 000 0000 53,750 000s (986, 250) Net income Required: Prepare a 2021 consolidated income statement for Angela and its subsidiary Eddy Tech. Assume that Angela, as a private company, elects to amortize goodwill over a 10-year period. Mc Graw < Prev 4 of 4 Type here to search 近。 dy SUI del f5 OLJ f3 144 3 %23 %3D 5. R ned WN A X

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
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LL %23 SI Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Inc., on January 1, 2021, in exchange for $9,000,000 in cash. At the acquisition date, Eddy Tech's stockholders' equity was $7,200,000 including retained earnings of At the acquisition date, Angela prepared the following fair value allocation schedule for its newly acquired subsidiary: Consideration transferred Eddy s stockholder's equity Excess fair over book value to patented technology (5-year remaining life) to trade names (indefinite remaining life) to equipment (8-year remaining life) 000 0006 $1,800,000 $150,000 500,000 0000 000 00 000 00 0 At the end of 2021, Angela and Eddy Tech report the following amounts from their individually maintained account balances, before consideration of their parent-subsidiary relationship. Parentheses indicate a credit balance. Angela Eddy Tech Sales 000 008 000 000 4,200,000 Cost of goods sold Depreciation expense Amortization expense Other operating expenses 000 0000 53,750 000s (986, 250) Net income Required: Prepare a 2021 consolidated income statement for Angela and its subsidiary Eddy Tech. Assume that Angela, as a private company, elects to amortize goodwill over a 10-year period. Mc Graw < Prev 4 of 4 Type here to search 近。 dy SUI del f5 OLJ f3 144 3 %23 %3D 5. R ned WN A X
Transcribed Image Text:LL %23 SI Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Inc., on January 1, 2021, in exchange for $9,000,000 in cash. At the acquisition date, Eddy Tech's stockholders' equity was $7,200,000 including retained earnings of At the acquisition date, Angela prepared the following fair value allocation schedule for its newly acquired subsidiary: Consideration transferred Eddy s stockholder's equity Excess fair over book value to patented technology (5-year remaining life) to trade names (indefinite remaining life) to equipment (8-year remaining life) 000 0006 $1,800,000 $150,000 500,000 0000 000 00 000 00 0 At the end of 2021, Angela and Eddy Tech report the following amounts from their individually maintained account balances, before consideration of their parent-subsidiary relationship. Parentheses indicate a credit balance. Angela Eddy Tech Sales 000 008 000 000 4,200,000 Cost of goods sold Depreciation expense Amortization expense Other operating expenses 000 0000 53,750 000s (986, 250) Net income Required: Prepare a 2021 consolidated income statement for Angela and its subsidiary Eddy Tech. Assume that Angela, as a private company, elects to amortize goodwill over a 10-year period. Mc Graw < Prev 4 of 4 Type here to search 近。 dy SUI del f5 OLJ f3 144 3 %23 %3D 5. R ned WN A X
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