Home / Questions / On January 3 2013 Persoff Corporation acquired all of the outstanding voting stock of Sea ...
On January 3, 2013, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc. in exchange for $6,000,000 in cash. Persoff elected to exercise control over Sea Cliff as a wholly owned subsidiary with an independent accounting system. Both companies have December 31 fiscal year-ends. At the acquisition date, Sea Cliff’s stockholders’ equity was $2,500,000 including retained earnings of $1,700,000. Persoff pursued the acquisition, in part, to utilize Sea Cliff’s technology and computer software. These items had fair values that differed from their values on Sea Cliff’s books as follows:
Sea Cliff’s remaining identifiable assets and liabilities had acquisition-date book values that closely approximated fair values. Since acquisition, no assets have been impaired. During the next three years, Sea Cliff reported the following income and dividends:
December 31, 2015, financial statements for each company appear below. Parentheses indicate credit balances. Dividends declared were paid in the same period.
a. Construct Persoff’s acquisition-date fair-value allocation schedule for its investment in Sea Cliff.
b. Show how Persoff determined its Equity earnings in Sea Cliff balance for the year ended December 31, 2015.
c. Show how Persoff determined its December 31, 2015, Investment in Sea Cliff balance.
d. Prepare a worksheet to determine the consolidated values to be reported on Persoff’s financial statements.
Jul 22 2020 View more View Less
Problem 10 A company makes three products and has available 4 workstations. The production time (in minutes) per unit produced varies from workstation to workstation (due...
May 10 2020Suppose you purchase a T-bill that is 125 days from maturity for $9,765. The T-bill has a face value of $10,000. (LG 5-2)a. Calculate the T-bill’s quoted discount yield.b...
Apr 26 2020Which of the following is not one of the basic types of skills that employees can acquire in skill-based compensation plans?A. Depth skillsB. Vertical skillsC. Horizontal...
May 29 2020Describe the range of the function. f(x,y) = pt² + y² +5 a. b. {(x, )|s(x,y)2 {f(x, y)||(x,y) se) {f(x,y)||(x, y)21 f(x,y)|f(x,y) any real number C. d.
May 06 2021Sketch the resonance structures for the nitrate ion, NO3. Is the hybridization of the N atom the same or different in each structure? Describe the orbitals involved in bo...
Jun 19 2021On January 2, 2013, Fran acquires a business from Chuck. Amongthe assets purchased are the following intangibles: patent with a7-year remaining life, a covenant not to co...
Mar 20 2020Sarah Mix decides to invest $500 per month in three funds, with $200 going into a small capital growth fund, $150 going into a large capital growth fund, and $150 into an...
Aug 10 2021Find the derivative of the function
Jul 01 2021Considering that credit unions are exempt from income taxes while banks are not, do credit unions have an unfair advantage?
Aug 11 2021