Mighty Company purchased a 60 percent interest in Lowly Company on January 1, 2013, for $537, 600 in cash Lowly’s book value at that date was reported as $700.000 and the fair value of the noncontrolling interest was assessed at $358.400. Any excess acquisition-date fair value over Lowly’s book value is assigned to trademarks to be amortized over 20 years Subsequently, on January 1. 2014. Lowly acquired a 20 percent interest in Mighty The price of $348,000 was equivalent to 20 percent of Mighty’s book and fair value. Neither company has paid dividends since these acquisitions occurred On January 1. 2014. Lowly’s book value was $960,000, a figure that rises to $1.022,000 (Common Stock of $300,000 and Retained Earnings of $722.000) by year end Mighty s book value was $1 74 million at the beginning of 2014 and $1.84 million (Common Stock of $1 million and Retained Earnings of $840,000) at December 31. 2014 No intra entity transactions have occurred and no additional stock has been sold Each company applies the initial value method in accounting for the individual investments Prepare worksheet entries which are required to consolidate these two companies for 2014? (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.) Show transcribed image text Mighty Company purchased a 60 percent interest in Lowly Company on January 1, 2013, for $537, 600 in cash Lowly’s book value at that date was reported as $700.000 and the fair value of the noncontrolling interest was assessed at $358.400. Any excess acquisition-date fair value over Lowly’s book value is assigned to trademarks to be amortized over 20 years Subsequently, on January 1. 2014. Lowly acquired a 20 percent interest in Mighty The price of $348,000 was equivalent to 20 percent of Mighty’s book and fair value. Neither company has paid dividends since these acquisitions occurred On January 1. 2014. Lowly’s book value was $960,000, a figure that rises to $1.022,000 (Common Stock of $300,000 and Retained Earnings of $722.000) by year end Mighty s book value was $1 74 million at the beginning of 2014 and $1.84 million (Common Stock of $1 million and Retained Earnings of $840,000) at December 31. 2014 No intra entity transactions have occurred and no additional stock has been sold Each company applies the initial value method in accounting for the individual investments Prepare worksheet entries which are required to consolidate these two companies for 2014? (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."
