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80% Cost Model - Partial Goodwill

The document presents a consolidated financial statement worksheet for Parent Corp and Son Corp as of December 31, 2024, detailing income, expenses, retained earnings, and balance sheet items. It includes calculations for net income, non-controlling interest, and goodwill under a partial goodwill model. The document also outlines the amortization of excess and adjustments for over/undervaluation of assets and liabilities.

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Geofrey Rivera
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7 views3 pages

80% Cost Model - Partial Goodwill

The document presents a consolidated financial statement worksheet for Parent Corp and Son Corp as of December 31, 2024, detailing income, expenses, retained earnings, and balance sheet items. It includes calculations for net income, non-controlling interest, and goodwill under a partial goodwill model. The document also outlines the amortization of excess and adjustments for over/undervaluation of assets and liabilities.

Uploaded by

Geofrey Rivera
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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80% COST MODEL (Partial Goodwill)

Worksheet for Consolidated Financial Statements


December 31, 2024

Income Statement Parent Corp Son Corp. Debit Credit Consolidated


Sales 450,000.00 300,000.00 750,000.00
Dividend Income 32,000.00 32,000 5 0.00
Total Revenue 482,000.00 300,000.00 750,000.00
Cost of Goods Sold 180,000.00 160,000.00 340,000.00
Depreciation expense 50,000.00 20,000.00 5,000 4 75,000.00
Interest expense 1,000 4 1,000.00
Goodwill impairment loss 0.00
Other expenses 60,000.00 45,000.00 105,000.00
Total Cost and Expenses 290,000.00 225,000.00 521,000.00
Net Income 192,000.00 75,000.00 229,000.00
NCI in Net Income - Son 13,800 6 (13,800.00)
Net Income to Retained Earnings 192,000.00 75,000.00 215,200.00

Statement of Retained Earnings


Retained earnings, 1/1
Parent Corporation 404,000.00 11,300 4 16,000 1 408,700
Son Corporation 120,000.00 120,000 2 -
Net Income from above 192,000.00 75,000.00 215,200
Total 596,000.00 195,000.00 623,900
Dividends paid
Parent Corporation 60,000.00 60,000
Son Corporation 40,000.00 40,000 5 -
Retained earnings, 12/31 to Balance Sheet 536,000.00 155,000.00 563,900

Balance Sheet
Cash 221,000.00 85,000.00 306,000
Accounts receivable 150,000.00 80,000.00 230,000
Inventory 180,000.00 90,000.00 5,000 3 5,000 4 270,000
Land 175,000.00 40,000.00 6,000 3 221,000
Equipment 200,000.00 150,000.00 350,000
Buildings 600,000.00 450,000.00 180,000 3 870,000
Discount on Bonds Payable 4,000 3 2,000 4 2,000
Goodwill 10,000 3 2,500 4 7,500
Investment in Son Corporation 310,000.00 16,000 1 256,000 2 -
70,000 3
Total 1,836,000.00 895,000.00 2,256,500

Accumulated depreciation - equipment 125,000.00 85,000.00 80,000 3 20,000 4 150,000


Accumulated depreciation - buildings 375,000.00 255,000.00 160,000 3 460,000
10,000 4
Accounts payable 100,000.00 100,000.00 200,000
Bonds Payable 200,000.00 100,000.00 300,000
Ordinary shares, P10 par 500,000.00 200,000.00 200,000 2 500,000
Retained earnings, from above 536,000.00 155,000.00 563,900
Non-Controlling Interest 8,000 5 64,000 2
2,200 3 15,000 3
13,800 3 82,600
Total 1,836,000.00 895,000.00 684,300 684,300 2,256,500
Partial Goodwill
Consideration transferred 310,000.00
Less: BV of shareholders' equity of Son:
Ordinary shares 200,000 X 80%= 160,000.00
Retained earnings 100000 X 80%= 80,000.00 240,000.00
Allocated excess 70,000.00
Less: Over/undervaluation of assets and liabilities assumed:
Increase in inventory (P5,000 X 80%) 4,000.00
Increase in land (P6,000 X 80%) 4,800.00
Increase in equipment (P80,000 X 80%) 64,000.00
Decrease in building (P20,000 X 80%) - 16,000.00
Decrease in bonds payable (P4,000 X 80%) 3,200.00 60,000.00
Goodwill 10,000.00

Amortization of Excess" Over/Under Life 1st Year 2nd Year


Inventory 5,000.00 1 5,000.00
Equipment (net) 80,000.00 8 10,000.00 10,000.00
Buildongs (net) - 20,000.00 4 - 5,000.00 - 5,000.00
Bonds payable 4,000.00 4 1,000.00 1,000.00
69,000.00 11,000.00 6,000.00

2023 2024
Net Income of Son 50,000.00 75,000.00
Amortization of allocated excess 11,000.00 6,000.00
Balance 39,000.00 69,000.00
NCI 20% 20%
NCI in Net Income 7,800.00 13,800.00
Consideration transferred 310,000.00
FV of NCI 77,500.00
FV of Subsidiary 387,500.00
Less: BV of shareholders' equity of Son 300,000.00
Allocated Excess 87,500.00
Less: Over/undervaluation of assets and liabilities assumed:
Inventory 5,000.00
Land 6,000.00
Equipment (net) 80,000.00
Building (net) - 20,000.00
Bonds payable 4,000.00 75,000.00
Goodwill 12,500.00
Parent (80%) 10,000.00
NCI (20%) 2,500.00

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