# ACC 411 Homework assignment

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ACC 411 Homework assignment – part 1 (10 points) Petra paid \$516,000 for 80% of the stock of Sabrina on 1/1/X1 when Sabrina’s Stockholders’ Equity consisted of \$500,000 in Common Stock and \$100,000 in Retained Earnings. The following assets and liabilities of Sabrina had book values different from their fair values:
Account Book Value Fair Value Disposition Inventory 60,000 70,000 Sold in X1 Equipment 50,000 90,000 Remaining life 8 yrs on 1/1/X1 Building 70,000 40,000 Remaining life 12 yrs on 1/1/X1 Notes Payable 50,000 40,000 4 years to maturation on 1/1/X1
Requirements: 1) All work is to be your own, unless – your choice – you want to work with a partner. No sharing, otherwise. If you end up with a bad partner, and you have to do all the work yourself, do not complain to me; I will only laugh. Feel free to verify your work with me ahead of time, if you want to make sure of your results. 2) All work is to be done in Excel. Points off for presentation flaws. 3) Show the standard steps from Chapter 4: preliminary computation, noncontrolling interest at acquisition, allocation of cost over book value, and Income from Sub and Noncontrolling Interest Share for Year X3. Don’t worry about the T-accounts for Investment and Noncontrolling Interest. 4) Show eliminating entries and complete the consolidation worksheet; a sample worksheet is provided. The final numbers in the consolidation column must use formulas to compute the numbers that are displayed. 5) Complete the amortization schedule below. Be careful with how you use this table; this is where most of the mess ups occur.
6) Create two charts (not “tables”!) in Excel from the amortization schedule below. Title one “Contents of Unamortized Excess on Acquisition 1/1/X1” and the other “Unamortized Excess Balance 12/311X3.”
Account / / Balances @ 1/1/X1 A6-iort X1 Amort X2 Balances @ 12/31/X2 Amort X3 I Balances @ 12/31/X3 Inventory Equipment I Building Notes Payable / Goodwill Total

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