Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

Exercise 39

On June 30, 2013, Plaster, Inc., paid $916,000 for 80 percent of Stucco Company's outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $229,000. At acquisition date, Stucco reported the following book values for its assets and liabilities:

On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco's assets as follows:

At the end of 2013, the following comparative (2012 and 2013) balance sheets and consolidated income statement were available:

Additional Information for 2013
• On December 1, Stucco paid a $40,000 dividend. During the year, Plaster paid $100,000 in dividends.
• During the year, Plaster issued $800,000 in long-term debt at par.
• Plaster reported no asset purchases or dispositions other than the acquisition of Stucco.
Prepare a 2013 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows from operating activities.