Answer Happy

Pop Problem 1 (17.25 Points) Pop Corporation acquires 100 percent of Son Corporation at its book value and fair value of $120,000 in an acquisition on January 3, 2016. The balance sheet of Por Corporation and Son Corporation as of December 31, 2015, is as follows: Separate Balance Sheets December 31, 2015 Son Assets Current assets Cash $ 40,000 $ 40.000 Accounts receivable 90.000 60.000 Inventory 45,000 25.000 Total current assets 175,000 125.000 Plant assets 150,000 110.000 Less: Accumulated depreciation (30.000 (15.000) Total plant assets 120.000 95.000 Investment in Son 120.000 Total assets $415,000 $ 220,000 $ 75,000 55,000 130,000 60.000 40.000 100,000 Liabilites and Stockholder' Equity Currents liabilities Accounts payable Other current liablities Total current liabilities Stockholders' equity Capital stock Retained earnings Total stockholders's equity Total liabilities and stockholders's equity 200.000 80.000 85,000 40,000 285,000 120,000 $415,000 220.000 UNIVERSIDAD ANA MENDEZ UAGM Recinto de Garabo Instructions Prepare the consolidated balance sheet at date of acquisition Problem 2 (20.75 Points) #f, instead, Pop Corporation acquires all of Son Corporation stock for $135,000 Instructions a. Prepare the consolidated balance sheet at date of acquisition b. Prepare the joumal entry to eliminate the investment and record the goodwill c Show the computation to obtain goodwill. Problem 3 (18.75 Points) Pop Corporation acquires 80% of Son Corporation for $130,000 a. Prepare the consolidated balance sheet at date of acquisition. b. Prepare the journal entry to record the Adjustments and elimination