On January 1, 2013, Starbucks acquired 100% of Dunkin. On this date:
Starbucks acquired 100% of Dunkin’s outstanding common stock for $842,000 in cash.
Dunkin’s Buildings had a FV in excess of BV of $72,000 and remaining Useful Life was 12 years.
Dunkin’s Equipment had a FV in excess of BV of $10,000 and remaining Useful Life was 10 years.
Dunkin had an unrecorded Patent with a FMV $20,000 and remaining Useful Life was 20 years.
Dunkin’s Stockholder’s Equity total balance was $720,000 (no additional paid in capital existed)
During 2013, Dell had the following transactions
Declared and paid dividends of $30,000
Had net income for the year ending 2013 of $100,000
During 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay, Dell had the following transactions
Declared and paid dividends of $20,000
Had net income for the year ending 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay of $120,000
As of Dec. 31, 2015 – Research Paper Writing Help Service,
Starbucks and Dunkin reported the following selected balances, which include all revenue and expenses for the year 2015 – Research Paper Writing Help Service. NOT ALL OF THE BALANCE SHEET ACCOUNTS ARE PRESENTED HERE. All balances are Normal Balances. Dividends declared in this table represent only 2015 – Research Paper Writing Help Service activity
1. Prepare a schedule of Allocation of Acquisition Date Subsidiary Fair Value, including Goodwill, if any, and include information on excess Fair Value depreciation or amortization, if any.
2.
Prepare all the Journal Entries Starbucks (Parent Company) made associated with the Dunkin transactions on Starbucks’s standalone ledger for 2013 and 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay, PRIOR to the consolidation. The activity from the prior page is reproduced here for your convenience
During 2013, Dell had the following transactions
Declared and paid dividends of $30,000
Had net income for the year ending 2013 of $100,000
During 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay, Dell had the following transactions
Declared and paid dividends of $20,000
Had net income for the year ending 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay of $120,000
3.
Prepare all of the required Consolidation Journal Entries as of December 31, 2015 – Research Paper Writing Help Service. Indicate the LETTER
4. Prepare a T-Account for the parent company (Starbuck that reflects all of the postings from thedat of acquisition through the posting of the Consolidation entries. HINT: The ending balance must be zero after all of your postings
