|
|
|
|
|
|
|
| Granulosus Co. purchased 60 percent of the voting shares of Losillas Corp. on July 15, 2017, at that day’s book value. On that date, the fair value of uncontrollable interest was equal to 35 per cent. |
|
|
|
| Losillas Corp.’s book value The permanent accounts of the companies as of December 31, 2022, contained the following balance sheets: |
|
|
|
Granulosus Company |
Losillas Corporation |
|
|
|
|
| Cash and Accounts Receivable |
$236,000 |
$74,000 |
|
|
|
|
| Inventory |
68,700 |
38,600 |
|
|
|
|
| Land |
310,000 |
87,000 |
|
|
|
|
| Buildings and Equipment |
618,300 |
204,400 |
|
|
|
|
| Investment in Losillas Corporation shares |
250,000 |
________ |
|
|
|
|
|
$ 1,483,000 |
$ 404,000 |
|
|
|
|
|
|
|
|
|
|
|
| Accumulated depreciation |
$212,400 |
$76,000 |
|
|
|
|
| Accounts Payable |
350,000 |
32,500 |
|
|
|
|
| Notes Payable |
385,000 |
81,500 |
|
|
|
|
| Joint Actions |
161,600 |
132,000 |
|
|
|
|
| Retained Earnings |
374,000 |
82,000 |
|
|
|
|
|
$ 1,483,000 |
$ 404,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| On January 1, 2018, Granulosus paid $236,500 in the purchase of equipment with an estimated useful life of 10 years |
|
|
| The equipment was depreciated using the straight-line depreciation method with no residual value. |
|
| Losillas Corp. purchased equipment from Granulosus Co. on December 31, 2020, for $98,600. Assume that Losillas Corp. did not change the remaining life of the equipment. |
|
|
| October 16, 2021, Losillas Corp. sold land to Granulosus, which it had purchased for a cost of $124,000 on March 22, 2018, for a price of $68,000. Assume that Granulosus Co. uses the fully adjusted equity method. |
|
|
|
|
|
| 1. Prepare a consolidated Balance Sheet as of December 31, 2022. |
|
|
|
|
|
|
|
|
|
| 1. Prepare the Consolidated Balance Sheet as of December 31, 2022 |
|