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Goodwill Calculation

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posted:
11/24/2011
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Data



Current Year

Year of Acquisition

% of subsidiary's stock acquired(Percentage)

Actuisition Price, in dollars

FV of the NCI at the date of Acquisition, in dollars

Subsidiary's BVat the date of Actuisition, in dollars



Revaluations of the Subsidiary's Identifiable net Assets as of the date of Acquisition, in dollars









Goodwill









Intercompany Transactions









Trial Balance(EOY)



Current Assets

Plant and Equpment, net

Identifiable Intangible Asssets

Investment in Subsidiary

Liabilities

Capital Stock

Retained Earning, beginning of year

Treasury Stock

Accumulated other Comprehensive Income

Dividends

Sales Revenue

Cost of Goods Sold

Operating Expenses

Totals

Data



Current Year

Year of Acquisition

% of subsidiary's stock acquired(Percentage)

Actuisition Price, in dollars

FV of the NCI at the date of Acquisition, in dollars

Subsidiary's BVat the date of Actuisition, in dollars



Revaluations of the Subsidiary's Identifiable net Assets as of the date of Acquisition, in dollars

Inventory

Plant&Equipment

Estimated remaining life as of the date of acquisition, in years

Unrecorded Identifiable Intangibles

Estimated remaining life as of the date of acquisition, in years



Goodwill

Cumulative Goodwill Impairment Losses as of the Beginning of the Current Year

Goodwill Impairment Loss for the Current year



Intercompany Transactions

Total Current Year Upstream and Downstream Merchandise Sales, at Retail, in dollars

Total Upstream Beginning Inventory on the Parent's Books, in dollars

Total Upstream Ending Inventory on the Parent's Books, in dollars

Total Downstream Beginning Inventory on the Subsidiary's Books, in dollars

Total Downstream Ending Inventory on the Subsidiary's Books, in dollars

Downstream Markup on Cost(Percentage)

Upstream Markup on Cost(Percentage)

Price(in dollars) Charged by the Parent to the Subsidiary for the Current Year's Conculting Services.

Amount(in dollars) Owed by the Parent to the Subsidiary for Merchandise Purchases, as of the EOY

Amount(in dollars) Owed by the Subsidiary to the Parent for Merchandise Purchases and Consulting Services, as of the EOY





Trial Balance(EOY)



Current Assets

Plant and Equpment, net

Identifiable Intangible Asssets

Investment in Subsidiary

Liabilities

Capital Stock

Retained Earning, beginning of year

Treasury Stock

Accumulated other Comprehensive Income

Dividends

Sales Revenue

Cost of Goods Sold

Operating Expenses

Totals

2010 Years after the acquisition 5

2006

75%

$ 120,000,000

$ 35,000,000

$ 74,000,000





$ 1,000,000

$ 1,000,000

10

$ 25,000,000

10





$ 2,000,000

$ 1,000,000





$ 60,000

$ 10,400

$ 13,000

$ 20,800

$ 26,000

25%

30%

$ 1,000

$ 2,000

$ 4,000









Parent Subsidiary

$ 35,000,000 $ 20,500,000

$ 256,150,000 $ 192,000,000

$ 100,000,000 $ 10,000,000

$ 123,680,151

$ 380,000,000 $ 125,000,000

$ 80,000,000 $ 54,000,000

$ 51,830,151 $ 38,000,000

$ 5,000,000 $ 1,000,000

$ 2,000,000 $ 2,000,000

$ 1,000,000 $ 500,000

$ 400,000,000 $ 140,000,000

$ 250,000,000 $ 65,000,000

$ 143,000,000 $ 70,000,000

$0 $0

Equity in Net Income and Noncontrolling Interest in Net Income Sheet

Total Equity in Net Income

Subsidiary's New Income for the Current Year $5,000,000 $3,750,000

Adjustment for Revaluation Write-offs

Inventory $0 $0

Plant&Equipment ($100,000) ($75,000)

Unrecorded Identifiable Intangibles ($2,500,000) ($1,875,000)

Goodwill Impairment ($1,000,000) ($819,444)

Totals $1,400,000 $980,556



Adjustments for Intercompany Transactions

Upstream Confirmed in Beginning $2,400 $1,800

Downstream Confirmed in Beginning $4,160 $4,160

Upstream Unconfirmed in Ending ($3,000) ($2,250)

Downstream Unconfirmed in Ending ($5,200) ($5,200)

Totals ($1,640) ($1,490)



Totals $1,398,360 $979,066

ome Sheet

NC Interest in Net Income

$1,250,000



$0

($25,000)

($625,000)

($180,556)

$419,444







$600



($750)



($150)



$419,294

Goodwill Calcuation

Acquisition Cost

FV of NCI

Total FV

BV of Subsidiary

Revaluations of the Subsidiary's Identifiable net Assets as of the date of Acquisition, in dollars

Inventory

Plant&Equipment

Unrecorded Identifiable Intangibles

Total Goodwill







Amount and Percentage of Goodwill Allocated to the Parent

Acquisition Cost

Controlling Interest in the FV of Sub

Parent's Goodwill

Goodwill %



Amount and Percentage of Goodwill allocated to the Noncontrolling Interest

Total Goodwill

Parent's Goodwill

NCI's Goodwill

Goodwill %

$ 120,000,000

$ 35,000,000

$ 155,000,000

$ 74,000,000



$ 1,000,000

$ 1,000,000

$ 25,000,000

$ 54,000,000







t

$ 120,000,000

$ 75,750,000

$ 44,250,000

82%





$ 54,000,000

$ 44,250,000

$ 9,750,000

18%

Consolidation Working Paper, December, 31

Accounts Taken From books Eliminations

Parent Subsidiary Dr

Current assets $35,000,000 $20,500,000 R $0









Plant and equipment, net $256,150,000 $192,000,000 R $600,000

Identifiable intangible assets $100,000,000 $10,000,000 R $15,000,000

Investment in subsidiary $124,659,217 $0 I $4,160





Goodwill R $52,000,000

Liabilities ($380,000,000) ($125,000,000) I $2,000

I $4,000

Capital stock ($80,000,000) ($54,000,000) E $54,000,000

Retained earnings, beginning of year ($51,830,151) ($38,000,000) E $37,997,600

I $2,400

Treasury stock $5,000,000 $1,000,000

Accumulated other comprehensive income ($2,000,000) ($2,000,000) E $2,000,000

NCI's Interest







Dividends $1,000,000 $500,000



Sales revenue ($400,000,000) ($140,000,000) I $60,000

I $1,000

Equity in net income of subsidiary ($979,066) C $979,066

Cost of goods sold $250,000,000 $65,000,000 I $3,000

I $5,200



Operating expenses $143,000,000 $70,000,000

Inventory O $0

Plant&Equipment O $100,000

Unrecorded Identifiable Intangibles O $2,500,000

Goodwill Impairment Loss O $1,000,000

NCI's Interest in NI of Sub N $419,294









Total $0 $0 $166,677,720

, 31

Eliminations Consolidated Balances

Cr Dr (Cr)

$0 O

$3,000 I

$5,200 I C

$2,000 I I

$4,000 I $55,485,800 E

$100,000 O $448,650,000 R

$2,500,000 O $122,500,000 O

$604,066 C N

$69,748,200 E

$54,311,111 R ($0)

$1,000,000 O $51,000,000



($504,994,000)

($80,000,000)



($51,830,151)

$1,000,000 E $5,000,000

($2,000,000)

$23,249,400 E

$13,288,889 R

$294,294 N ($36,832,583)

$375,000 C

$125,000 N $1,000,000



($539,939,000)

$0

$60,000 I

$2,400 I

$4,160 I $314,941,640

$1,000 I





$215,599,000

$1,000,000

$419,294









$166,677,720 ($0)

Name of Company

Consolidated Statement of Income and Retained Earnings

For the Year Ended Date



Sales and other Revenue

Less: Cost of Goods Sold

Goowill impairment loss

Other Operating Expenses

Consolidated net income

Less: Noncontrolling interest in net income



Net income atrributable to parent



Plus: Retained Earning, Parent, Jan/1

Less: Dividend



Retained Earning, Parent, 12/31









Name of Company

Consolidated Balance Sheet

Date



Asset

Current Asset(Including Inventory) $ 55,485,800

Plant&Equipment $ 448,650,000

Identifiable Intangibles $ 122,500,000

Goodwill $ 51,000,000









Total Assets $ 677,635,800

Name of Company

Statement of Income and Retained Earnings

For the Year Ended Date



$ 539,939,000

$ (314,941,640)

$ (1,000,000)

$ (215,599,000)

$ 8,398,360

$ (419,294)



$ 7,979,066



$ 51,830,151

$ (1,000,000)



$ 58,809,217









Name of Company

Consolidated Balance Sheet

Date



Liablities and Stockholder's Equity

Current Liablity $ 504,994,000

Total Liablity $ 504,994,000



Stockholder's Equity

Parents stockholder's equity

Capital stock $ 80,000,000

Retained earning $ 58,809,217

Treasury Stock $ (5,000,000)

Accumulated other comprehensive income $ 2,000,000

Total parent's stockholder's euqity $ 135,809,217

Noncontrolling interest $ 36,832,583

Total stockholder's equity $ 172,641,800



Total liablities and stockholder's equity $ 677,635,800



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