accounting-Patterson Corporation acquired 80 percent of the 100,000 outstanding voting shares

On January 1, Patterson Corporation acquired 80 percent of the 100,000 outstanding voting shares of Soriano, Inc., in exchange for $31.25 per share cash. The remaining 20 percent of Soriano’s shares continued to trade for $30.00 both before and after Patterson’s acquisition. At January 1, Soriano’s book and fair values were as follows:Book ValuesFair ValuesRemaining LifeCurrent assets80,00080,000Buildings and equipment1,250,0001,000,0005 yearsTrademarks700,000900,00010 yearsPatented technology940,0002,000,0004 years2,970,000Current liabilities180,000180,000Long-term notes payable1,500,0001,500,000Common stock50,000Additional paid-in capital500,000Retained earnings740,0002,970,000In addition, Patterson assigned a $600,000 value to certain unpatented technologies recently developed by Soriano. These technologies were estimated to have a 3-year remaining life. During the year, Soriano paid a $30,000 dividend to its shareholders. The companies reported the following revenues and expenses from their separate operations for the year ending December 31.PattersonSorianoRevenues3,000,0001,400,000Expenses1,750,000600,000a. What total value should Patterson assign to its Soriano acquisition in its January 1 consolidated balance sheet?b. What valuation principle should Patterson use to report each of Soriano’s identifiable assets and liabilities in its January 1 consolidated balance sheet?c. For years subsequent to acquisition, how will Soriano’s identifiable assets and liabilities be valued in Patterson’s consolidated reports?d. How much goodwill resulted from Patterson’s acquisition of Soriano?e. What is the consolidated net income for the year and what amounts are allocated to the controlling and noncontrolling interests?f. What is the noncontrolling interest amount reported in the December 31 consolidated balance sheet?g. Assume instead that, based on its share prices, Soriano’s January 1 total fair value was assessed at $2,250,000. How would the reported amounts for Soriano’s assets change on Patterson’s acquisition-date consolidated balance sheet?

 

CLICK HERE TO ORDER A SIMILAR PAPER

We pride ourselves in writing quality essays

CLICK HERE TO CONTACT US

Lets Start Working

Plagiarism Free

We use anti-plagiarism software to ensure you get high-quality, unique papers. Besides, our writers have a zero plagiarism mentality

On Time Delivery

Your essay will be delivered strictly within the deadline.  If you have an urgent order, we can do it!

Money Back Guarantee

We offer warranty service, including free revisions, and a right to request a refund incase your expectations are not met!

THE BEST PAPER WRITER HELPER

Our Advantage

  • Say “NO” to plagiarism – FREE plagiarism report as an addition to your paper
  • The lowest prices that fit excellent quality
  • Authorship – you are the one who possesses the paper. We DO NOT re-sale or re-use any of them.

OUR PAPER WRITER HELPER GOODIES

Our Freebies

  • Free Cover Page
  • Free Revisions
  • Free Reference Page
  • Free 24/7 support

Pin It on Pinterest

Share This