5, Haskins acquires 100% of Sells on January 1, 2011. Haskins uses the equity me

Question

5, Haskins acquires 100% of Sells on January 1, 2011. Haskins uses the equity method. It is now December 31, 2014. dates The following are the stockholders equity accounts of Sells on various Common Stock Additional Paid in Capital Retained Earnings a. b. 12/31/14 160,000 2,500,000 150,000 120,000 2,000,000 100,000 140,000 2,300,000 130,000 Prepare consolidation worksheet S at December 31, 2014 Assume total Stockholders Equity of Haskins at December 31, 2015 is $6,000,000. How much is consolidated Stockholders equity How would this answer differ if Haskins were using the partial equity method and if there was $10,000 of excess amortization. c.

Explanation / Answer

a.

b.

c.

The balances will reduce by excess amortisation of $10,000.

31/12/2014 Common stock $      160,000.00 Additional paid in capital $ 2,500,000.00 Retained earnings $      150,000.00 Total equity (a) $ 2,810,000.00 Acquired stake by Haskins (b) 100% Amount to be considered for consolidation (a x b) $ 2,810,000.00

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