高級會計學（第10版）習題答案 ch03-Beams10e-sm

CHAPTER3

ANINTRODUCTIONTOCONSOLIDATEDFINANCIALSTATEMENTS

AnswerstoQuestions

1Acorporationbecomesasubsidiarywhenanothercorporationeitherdirectlyorindirectlyacquiresa

controllingfinancialinterest(generallyover50percent)ofitsoutstandingvotingstock.

2Amountsallocatedtoidentifiableassetsandliabilitiesinexcessofrecordedamountsonthebooksofthe

subsidiaryarenotrecordedseparatelybytheparent.Instead,theparentrecordsthefairvalue/purchase

priceoftheinterestacquiredinaninvestmentaccount.Theallocationtoidentifiableassetandliability

accountsismadethroughworkingpaperentrieswhentheparentandsubsidiaryfinancialstatementsare

consolidated.

3Thelandwouldbeshownintheconsolidatedbalancesheetat$100,000,itsfairvalue,assumingthatthe

purchasepriceisequaltoorgreaterthanthetotalfairvalueofthesubsidiary.Iftheparenthadacquiredan

80percentinterestandthepurchasepricewasequaltoorgreaterthanthefairvalueoftheinterestacquired,

thelandwouldstillappearintheconsolidatedbalancesheetat$100,000.

4Parentcompany-acorporationthatownsacontrollinginterestintheoutstandingvotingstockofanother

corporation(itssubsidiary).

Subsidiarycompany-acorporationthatiscontrolledbyaparentcompanythatownsa

controllinginterestinitsoutstandingvotingstock,eitherdirectlyorindirectly.

Affiliatedcompanies-companiesthatarecontrolledbyasinglemanagementteamthrough

parent-subsidiaryrelationships.(Althoughthetermaffiliateisasynonymforsubsidiary,theparent

companyisincludedinthetotalaffiliationstructure.)

Associatedcompanies-companiesthatarecontrolledthroughparent-subsidiaryrelationshipsor

whoseoperationscanbesignificantlyinfluencedthroughequityinvestmentsof20percentto50percent.

5Anoncontrollinginterestistheequityinterestinasubsidiarycompanythatisownedbystockholders

outsideoftheaffiliationstructure.Inotherwords,itistheequityinterestinasubsidiarythatisnotheldby

theparentcompanyorsubsidiariesoftheparentcompany.

6UndertheprovisionsofFASBStatementNo.94,"ConsolidationofAllMajority-ownedSubsidiaries,,,a

subsidiarywillnotbeconsolidatedifcontrolistemporaryorifcontroldoesnotrestwiththemajority

owner,suchasinthecaseofasubsidiaryinreorganizationorbankruptcy,orwhenthesubsidiaryoperates

undersevereforeignexchangerestrictionsorothergovernmentallyimposedrestrictions.

7Consolidatedfinancialstatementsareintendedprimarilyforthestockholdersandcreditorsoftheparent

company,accordingtoSFASNo.160(andARBNo.51).

8Theamountofcapitalstockthatappearsinaconsolidatedbalancesheetisthetotalparorstatedvalueof

theoutstandingcapitalstockoftheparentcompany.

9Goodwillfromconsolidationmayappearinthegeneralledgerofthesurvivingentityinamergeror

consolidationaccountedforasanacquisition.Butgoodwillfromconsolidationwouldnotappearinthe

generalledgerofaparentcompanyoritssubsidiary.Goodwillisenteredinconsolidationworkingpapers

whenthereciprocalinvestmentandequityamountsareeliminated.Workingpaperentriesaffect

consolidatedfinancialstatements,buttheyarenotenteredinanygeneralledger.

35

36AnIntroductiontoConsolidatedFinancialStatements

10Theparentcompany'sinvestmentinsubsidiarydoesnotappearinaconsolidatedbalancesheetifthe

subsidiaryisconsolidated.Itwouldappearintheparentcompany'sseparatebalancesheetunderthe

heading“investments"or"otherassets."Investmentsinunconsolidatedsubsidiariesareshownin

consolidatedbalancesheetsasinvestmentsorotherassets.Theyareaccountedforundertheequitymethod

iftheparentcanexercisesignificantinfluenceoverthesubsidiary;otherwise,theyareaccountedforbythe

fairvalue/costmethod.

11Parent'shooks:Reciprocalaccountsonsubsidiary'shooks:

InvestmentinsubsidiaryCapitalstockandretainedearnings

SalesPurchases

AccountsreceivableAccountspayable

InterestincomeInterestexpense

DividendsreceivableDividendspayable

AdvancetosubsidiaryAdvancefromparent

12Reciprocalaccountsareeliminatedintheprocessofpreparingconsolidatedfinancialstatementsinorderto

showthefinancialpositionandresultsofoperationsofthetotaleconomicentitythatisunderthecontrolof

asinglemanagementteam.Salesbyaparenttoasubsidiaryareinternaltransactionsfromtheviewpointof

theeconomicentityandthesameistrueofinterestincomeandinterestexpenseandrentincomeandrent

expensearisingfromintercompanytransactions.Similarly,receivablesfromandpayablestoaffiliated

companiesdonotrepresentassetsandliabilitiesoftheeconomicentityforwhichconsolidatedfinancial

statementsareprepared.

13Thestockholders'equityofaparentcompanyundertheequitymethodisthesameastheconsolidated

stockholders'equityofaparentcompanyanditssubsidiariesprovidedthatthenoncontrollinginterest,if

any,isreportedoutsideoftheconsolidatedstockholders5equity.Ifnoncontrollinginterestisincludedin

consolidatedstockholders5equity,itrepresentsthesoledifferencebetweentheparentcompany's

stockholdcrs,equityundertheequitymethodandconsolidatedstockholders,equity.

14No.Theamountsthatappearintheparentcompany'sstatementofretainedearningsundertheequity

methodandtheamountsthatappearintheconsolidatedstatementofretainedearningsareidentical.

15Incomeattributabletononcontrollinginterestisnotanexpense,butratheritisanallocationofthetotal

incometotheconsolidatedentitybetweencontrollingandnoncontrollingstockholders.Fromtheviewpoint

ofthecontrollinginterest(thestockholdersoftheparentcompany),incomeattributabletononcontrolling

interesthasthesameeffectonconsolidatednetincomeasanexpense.Thisisbecauseconsolidatednet

incomeisincometotheparentcompanystockholders.Alternatively,youcanviewtotalconsolidatednet

incomeasbeingallocatedtothecontrollingandnoncontrollinginterests.

16Thecomputationofnoncontrollinginterestiscomparabletothecomputationofretainedearnings.Itis

computed:

NoncontrollinginterestbeginningoftheperiodXX

Add:IncomeattributabletononcontrollinginterestXX

Deduct:Noncontrollinginterestdividends-XX

NoncontrollinginterestendoftheperiodXX

17Itisacceptabletoconsolidatetheannualfinancialstatementsofaparentcompanyandasubsidiarywith

differentfiscalperiods,providedthatthedatesofclosingarenotmorethanthreemonthsapart.Any

significantdevelopmentsthatoccurintheinterveningthree-monthperiodshouldbedisclosedinnotesto

thefinancialstatements.Inthesituationdescribed,itisacceptabletoconsolidatethefinancialstatementsof

thesubsidiarywithanOctober31closingdatewiththefinancialstatementsoftheparentwithaDecember

31closingdate.

18Theacquisitionofsharesheldbynoncontrollingstockholdersdoesnotconstituteabusinesscombination.

Rather,itmustbeaccountedforasatreasurystocktransaction.Itisnotpossible,bydefinition,toacquire

acontrollinginterestfromnoncontrollingstockholders.

SOLUTIONSTOEXERCISES

SolutionE3-1SolutionE3-2

1B1d

2C2b

3D3d

4D4d

5B5a

6A6d

7c

SolutionE3-3[AICPAadapted]

1dNoncontrollinginterestof$35,100/30%=$117,000

2cAdvancetoHill$75,000+receivablefromWard$200,000=$275,000

3aGoodwillhasanindeterminatelifeandisnotamortized.

4aOwenaccountsforSharpusingtheequitymethod,therefore,

consolidatedretainedearningsisequaltoOwen'sretainedearnings,or

$1,240,000.

5dAllintercompanyreceivablesandpayablesareeliminated.

SolutionE3-4

1ImpliedfairvalueofSantaMaria($900z000/90%)$1,000,000

Less:BookvalueofSantaMaria(900,000)

Excessfairvalueoverbookvalue$100,000

Equipmentundervalued30,000

GoodwillatJanuarylz2009$70,000

GoodwillatDecember31,2009=Goodwillfromconsolidation$70,000

Sincegoodwillisnotamortized

2Consolidatednetincome

Pinto'sreportednetincome$490,000

Less:Correctionfordepreciationonexcessallocated

toequipment($30,000/3years)(10z000)

Consolidatednetincome$480,000

SolutionE3-5

1$600,000,thedividendsofPanderman

2$330,000,equalto$300,000dividendspayableofPandermanplus$30,000

dividendspayabletononcontrollinginterestsofSadisman.

38AnIntroductiontoConsolidatedFinancialStatements

SolutionE3-6

Preliminarycomputation

CostofSliderstock(Fairvalue)$1,250,000

BookvalueofSlider1,000,000

Goodwill2250,00。

1Journalentrytorecordpushdownvalues

Inventories20z000

Land50,000

Buildings一net150,000

Equipment—net80,000

Goodwill250,000

Retainedearnings210,000

Notepayable10,000

Push-downcapital750,000

2SliderCorporation

BalanceSheet

January1,2010

(inthousands)

Assets

Cash$70

Accountsreceivable80

Inventories100

Land200

Buildings—net500

Equipment—net300

Goodwill250

Totalassets$1,500

Liabilities

Accountspayable$100

Notepayable150

Totalliabilities250

Stockholders'equity

Capitalstock$500

Push-downcapital750

Totalstockholders^equity1,250

Totalliabilitiesandstockholders^equity$1,500

40AnIntroductiontoConsolidatedFinancialStatements

SolutionE3-7

1PastureCorporationandSubsidiary

ConsolidatedIncomeStatement

fortheyear2010

Sales($1,000,000+$400,000)$1,400,000

Less:Costofsales($600,000+$200,000)(800,000)

Grossprofit600,000

Less:Depreciationexpense($50/000+$40,000)(90,000)

Otherexpenses($199,000+$90,000)(289,000)

Totalconsolidatedincome221,000

Less:Noncontrollinginterestshare($70,000x30%)(21,000)

Controllinginterestshareofcnsolidatednetincomeazoo,QO6

2PastureCorporationandSubsidiary

ConsolidatedIncomeStatement

fortheyear2010

Sales($1,000,000+$400,000)$1,400,000

Less:Costofsales($600,000+$200,000)(800,000)

Grossprofit600,000

Less:Depreciationexpense($50,000+$40,000-$6,000)(84,000)

Otherexpenses($199,000+$90,000)(289,000)

Totalconsolidatedincome227,000

Less:Noncontrollinginterestshare

[($70,000x30%)+($6,000depreciationx30%)](22,800)

Controllinginterestshareofcnsolidatednetincome$204,200

Supportingcomputations

Depreciationofexcessallocatedtoovervaluedequipment:

$30,000/5years=$6,000

SolutionE3-8

1Capitalstock

Thecapitalstockappearingintheconsolidatedbalancesheetat

December31,2009is$1,800,000,thecapitalstockofPoball,

theparentcompany.

2GoodwillatDecember31,2009

InvestmentcostatJanuary2,2009(80%interest)$7QQZ000

ImpliedtotalfairvalueofSoftcan($700,000/80%)$875,000

BookvalueofSoftcan(100%)(600,000)

Excessisconsideredgoodwillsincenootherfairvalue

informationisgiven.$275,000

3ConsolidatedretainedearningsatDecember31,2009

Poball'sretainedearningsJanuary2(equalto

beginningconsolidatedretainedearnings$800,000

Add:NetincomeofPoball(equaltocontrollingshareof

consolidatednetincome)300,000

Less:DividendsdeclaredbyPoball(180,000)

ConsolidatedretainedearningsDecember31$920,000

4NoncontrollinginterestatDecember31,2009

CapitalstockandretainedearningsofSoftcanon

January2$600,000

Add:Softcan7snetincome90,000

Less:DividendsdeclaredbySoftcan(50,000)

Softcan'sstockholders^equityDecember31640,000

Noncontrollinginterestpercentage_______20%

NoncontrollinginterestDecember31$128,000

DividendspayableatDecember31r2009

DividendspayabletostockholdersofPoball$90,000

Dividendspayabletononcontrollingstockholders($25,000x

20%)5,000

Dividendspayabletostockholdersoutsidethe

Consolidatedentity$95,000

42AnIntroductiontoConsolidatedFinancialStatements

SolutionE3-9

PaskeyCorporationandSubsidiary

PartialBalanceSheet

atDecember31z2010

Stockholdersfequity:

Capitalstock,$10par$300,000

Additionalpaid-incapital50,000

Retainedearnings65,000

Equityofcontrollingstockholders415,000

Noncontrollinginterest41,000

Totalstockholderszequity$456,000

Supportingcomputations

Computationofconsolidatedretainedearnings:

7

PaskeysDecember31z2009retainedearnings$35,000

Add:Paskey'sreportedincomefor201055,000

Less:Paskey'sdividends(25,000)

ConsolidatedretainedearningsDecember31,2010$65,000

ComputationofnoncontrollinginterestatDecember31,2010

Salam'sDecember31,2009stockholderszequity$200,000

Incomelessdividendsfor2010($20,000-$15,000)5,000

Salam'sDecember31,2010stockholders"equity205,000

Noncontrollinginterestpercentage20%

NoncontrollinginterestDecember31,2010$41,000

SolutionE3-10

PeekosCorporationandSubsidiary

ConsolidatedIncomeStatement

fortheyearendedDecember31,2011

(inthousands)

Sales$2,100

Costofgoodssold1,100

Grossprofit1,000

Deduct:Operatingexpenses560

Totalconsolidatedincome440

Deduct:Noncontrollinginterestshare14

Controllinginterestshareofconsolidatednetincome$426

Supportingcomputations

InvestmentcostJanuary2,2009(90%interest)$810

ImpliedtotalfairvalueofSlogger($810,000/90%)$900

Slogger7sBookvalueacquired(100%)(700)

Excessoffairvalueoverbookvalue$200

Excessallocatedto:

Inventories(soldin2009)$30

Equipment(4yearsremaininguselife)40

Goodwill130

Excessoffairvalueoverbookvalue$200

Operatingexpenses:

CombinedoperatingexpensesofPeekosandSlogger$550

Add:Depreciationonexcessallocatedtoequipment

($40,000/4years)____10

Consolidatedoperatingexpenses$560

44AnIntroductiontoConsolidatedFinancialStatements

SOLUTIONSTOPROBLEMS

SolutionP3-1

1PennyvaleCorporationandSubsidiary

ConsolidatedBalanceSheet

atDecember31,2009

Assets

Cash($32,000+$18,000)$50,000

Accountsreceivable($45,000+$34,000-$5,000)74,000

Inventories($143,000+$56,000)199,000

Equipment-net($380,000+$175,000)555,000

Totalassets$878,000

LiabilitiesandStockholdersrEquity

Liabilities:

Accountspayable($40,000+$33,000-$5,000)$68z000

Stockholderszequity:

Commonstock,$10par460,000

Retainedearnings300,000

Noncontrollinginterest($150,000+$100,000)x20%50,000

Totalliabilitiesandstockholders^equity$878,000

2Consolidatednetincomefor2010

Pennyvale'sseparateincome$170z000

Add:IncomefromSutherlandSales($90,000x80%)72,000

Consolidatednetincome$242,000

Noncontrollinginterestshare(20%)S48,400

Controllinginterestshare(80%)$193,600

SolutionP3-2

1Scheduletoallocatefairvalue/bookvaluedifferential

CostofinvestmentinSetting$175,000

ImpliedfairvalueofSetting($175,000/70%)$250,000

BookvalueofSetting(110,000)

Excessfairvalueoverbookvalue$14QZ000

Excessallocated:

FairValueBookValueAllocation

Inventories($50,000-$30,000)$20,000

Land($60,000-$50,000)10,000

Buildings—net($90,000-$70,000)20,000

Equipment一net($30,000-$40,000)(10,000)

Otherliabilities($40,000-$50,000)10,000

Allocatedtoidentifiablenetassets-50,000

Goodwillfortheremainder90,000

Excessfairvalueoverbookvalue$140z000

2ParlorCorporationandSubsidiary

ConsolidatedBalanceSheet

atJanuary1,2009

Assets

Currentassets:

Cash($35,000+$20,000)$55,000

Receivables—net($80,000+$30,000)110,000

Inventories($70,000+$30z000+$20,000)120,000$285,000

Property,plantandequipment:

Land($100,000+$50,000+$10,000)$160,000

200000

Buildings—net($110,000+$70z000+$20,000)z

110,000470000

Equipment-net($80z000+$40z000-$10,0