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    Consolidated Balance Sheet Kasper Timmin

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    (Incomplete Data with Purchase Differential)

    Incomplete Data with Purchase Differential

    Kasper Corporation acquired controlling interest over Timmin Company on January 1, 20X7, and a consolidated balance was
    prepared. Partial balance sheet data for Kasper, Timmin, and the consolidated entry follow:

    Kasper Corporation And Timmin Company
    Partial Balance Sheet Data
    January 1, 20X7
    Kasper Timmin Consolidated
    Item Corp Co. Entry

    Cash and Accounts Receivable $180,000 $60,000 $240,000
    Inventory 200,000 100,000 328,000
    Land 100,000 50,000 167,000
    Buildings and Equipment (net) 400,000 150,000 588,000
    Investment in Timmin Stock ?
    Total ? $360,000 $1,323,000

    Accounts Payable $70,000 $40,000 $110,000
    Bonds Payable 300,000 300,000
    Common Stock ? 150,000 250,000
    Retained Earnings 567,000 170,000 ?
    Noncontrolling Interest 96,000
    Total $ ? $360,000 $1,323,000

    The fair value of Timmin's land was $80,000, and the fair value of its buildings and equipment was $220,000 at the date of
    acquisition.

    Required
    a. What amount of retained earnings is reported in the consolidated balance sheet?

    b. What percentage ownership of Timmin does Kasper hold?

    c. What is the fair value of inventory held by Timmin at January 1, 20X7?

    d. What is the fair value of Timmin's net assets at January 1, 20X7?

    e. What amount did Kasper pay to acquire its ownership in Timmin?

    f. Give all eliminating entries needed to prepare the consolidated balance sheet for Kasper and Timmin.

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    Solution Preview

    Incomplete Data with Purchase Differential

    Kasper Corporation acquired controlling interest over Timmin Company on January 1, 20X7, and a consolidated balance was
    prepared. Partial balance sheet data for Kasper, Timmin, and the consolidated entry follow:

    Kasper Corporation And Timmin Company
    Partial Balance Sheet Data
    January 1, 20X7
    Kasper Timmin Consolidated
    Item Corp Co. Entry

    Cash and Accounts Receivable $180,000 $60,000 $240,000 ...

    Solution Summary

    The expert examines the consolidated balance sheet for Kasper Timmin.

    $2.19

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