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On December 31, 2011, Paladium International Purchased 70% of the Outstanding

Question 11

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On December 31, 2011, Paladium International purchased 70% of the outstanding common stock of Sennex Chemical.Paladium paid $140,000 for the shares and determined that the fair value of all recorded Sennex assets and liabilities approximated their book values, with the exception of a customer list that was not recorded and had a fair value of $10,000, and an expected remaining useful life of 5 years.At the time of purchase, Sennex had stockholders' equity consisting of capital stock amounting to $20,000 and retained earnings amounting to $80,000.Any remaining excess fair value was attributed to goodwill.The separate financial statements at December 31, 2012 appear in the first two columns of the consolidation workpapers shown below.
Required:
Complete the consolidation working papers for Paladium and Sennex for the year 2012.
Paladium
On December 31, 2011, Paladium International purchased 70% of the outstanding common stock of Sennex Chemical.Paladium paid $140,000 for the shares and determined that the fair value of all recorded Sennex assets and liabilities approximated their book values, with the exception of a customer list that was not recorded and had a fair value of $10,000, and an expected remaining useful life of 5 years.At the time of purchase, Sennex had stockholders' equity consisting of capital stock amounting to $20,000 and retained earnings amounting to $80,000.Any remaining excess fair value was attributed to goodwill.The separate financial statements at December 31, 2012 appear in the first two columns of the consolidation workpapers shown below. Required: Complete the consolidation working papers for Paladium and Sennex for the year 2012. Paladium On December 31, 2011, Paladium International purchased 70% of the outstanding common stock of Sennex Chemical.Paladium paid $140,000 for the shares and determined that the fair value of all recorded Sennex assets and liabilities approximated their book values, with the exception of a customer list that was not recorded and had a fair value of $10,000, and an expected remaining useful life of 5 years.At the time of purchase, Sennex had stockholders' equity consisting of capital stock amounting to $20,000 and retained earnings amounting to $80,000.Any remaining excess fair value was attributed to goodwill.The separate financial statements at December 31, 2012 appear in the first two columns of the consolidation workpapers shown below. Required: Complete the consolidation working papers for Paladium and Sennex for the year 2012. Paladium

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