Chapter 5 Assignment complete assignment after lockdown

My Subscriptions / Courses / 98950-ACC 4220:LAN-Advanced Accounting I Distant Education / Chapter 5 / Chapter 5 Assignment Started on Saturday, 2 March 2019, 11:35 AM State Finished Completed on Saturday, 2 March 2019, 11:40 AM Time taken 5 mins 28 secs Marks 15.00/15.00 Grade 10.00 out of 10.00 (100%) QUESTION 1 Correct Mark 3.00 out of 3.00 Equity in Net Income and Noncontrolling Interest in Net Income Palm Resorts acquired its 70 percent interest in Sun City on January 1, 2017, for $41,750,000. The fair value of the 30 percent noncontrolling interest at the date of acquisition was $14,750,000. Sun City’s date-of-acquisition reported net assets of $5,000,000 were carried at amounts approximating fair value, but it had unrecorded identifiable intangibles, capitalizable per ASC Topic 805, valued at $7,500,000. These intangibles are determined to have limited lives, amortized on a straight-line basis over five years. It is now December 31, 2020, and Sun City reports net income of $10,000,000. Required a. Calculate the amount of goodwill originally reported for this acquisition, and its allocation to the controlling and noncontrolling interests. Enter answers in thousands (example, $41,750,000 equals $41,750 in thousands). Total goodwill $ 44,000  Allocation to controlling interests $ 33,000  Allocation to noncontrolling interests $ 11,000  b. Calculate equity in net income and the noncontrolling interest in net income for 2020, assuming goodwill from this acquisition is impaired by $2,000,000 in 2020. Enter answers in thousands (example, $3,000,000 equals $3,000 in thousands). Use negative signs with answers that reduce net income amounts. Total Equity in NI Noncontrolling Interest in NI Sun City’s reported net income $ 10,000  $ 7,000  $ 3,000  Revaluation write-offs: Identifiable intangibles (1,500)  (1,050)  (450)  Goodwill impairment loss (2,000)  (1,500)  (500)  $ 6,500  $ 4,450  $ 2,050  Correct Marks for this submission: 3.00/3.00. This study source was downloaded by from CourseH on :11:54 GMT -05:00 This study resource was shared via CourseH3/30/2019 Chapter 5 Assignment QUESTION 2 Correct Mark 4.00 out of 4.00 Consolidation Eliminating Entries, Date of Acquisition and Two Years Later Plaza Hotels acquired a 90 percent interest in Stardust Casinos on January 1, 2020 for $51,100,000. The fair value of the 10 percent noncontrolling interest at the date of acquisition was $2,900,000. Stardust’s date-ofacquisition reported net assets were carried at amounts approximating fair value, except for these items: • Plant and equipment, 10-year life, straight-line, is overvalued by $6,000,000. • Previously unrecorded limited-life identifiable intangibles, 4-year life, straight-line, were valued at $8,000,000. Stardust’s equity accounts at the date of acquisition were as follows: Capital stock $300,000 Retained earnings 1,650,000 Accumulated other comprehensive income 50,000 Total $2,000,000