On January 1, 2013, Parflex Corporation exchanged $344,000 cash for 90 percent of Eagle…

 
   

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On January 1, 2013, Parflex Corporation exchanged $344,000 cash for 90 percent of Eagle Corporation’s outstanding voting stock. Eagle’s acquisition date balance sheet follows: On January 1, 2013, Parflex prepared the following fair-value allocation schedule: Consideration transferred by Parflex . . . . . . . . . . . . . . . . . . . . . $344,000 10% noncontrolling interest fair value . . . . . . . . . . . . . . . . . . . 36,000 Fair value of Eagle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380,000 Book value of Eagle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324,000 Excess fair over book value . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56,000 to equipment (undervalued, remaining life of 9 years) . . . . . . 18,000 to goodwill (indefinite life) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 38,000 The companies’ financial statements for the year ending December 31, 2015, follow: At year-end, there were no intra-entity receivables or payables. a. Compute the goodwill allocation to the controlling and noncontrolling interest. b. Show how Parflex determined its “Investment in Eagle” account balance. c. Determine the amounts that should appear on Parflex’s December 31, 2015, consolidated statement of financial position and its 2015 consolidated incomestatement.