Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 12

Following are financial statements for Moore Company and Kirby Company for 2015:


• Moore purchased 90 percent of Kirby on January 1, 2014, for $657,000 in cash. On that date, the 10 percent noncontrolling interest was assessed to have a $73,000 fair value. Also at the acquisition date, Kirby held equipment (4-year remaining life) undervalued on the financial records by $20,000 and interest-bearing liabilities (5-year remaining life) overvalued by $40,000. The rest of the excess fair value over book value was assigned to previously unrecognized brand names and amortized over a 10-year life.
• During 2014 Kirby earned a net income of $80,000 and declared no dividends.
• Each year Kirby sells Moore inventory at a 20 percent gross profit rate. Intra-entity sales were $145,000 in 2014 and $160,000 in 2015. On January 1, 2015, 30 percent of the 2014 transfers were still on hand and, on December 31, 2015, 40 percent of the 2015 transfers remained.
• Moore sold Kirby a building on January 2, 2014. It had cost Moore $100,000 but had $90,000 in accumulated depreciation at the time of this transfer. The price was $25,000 in cash. At that time, the building had a 5-year remaining life.
Determine all consolidated balances either computationally or by using a worksheet.