Problem - Joe, Inc., and Bill Inc. created a business combination on January 1, 2016 when Joe acquired a percentage of the outstanding shares of Bill. The details of the acquisition are in attached file.
Required -
1. Prepare a schedule for the acquisition-date fair value allocations and amortization.
2. Determine the amount recorded in the "Investment in Bill" account at (a) December 31, 2019 and (b) December 31, 2020.
3. Reconcile the "Investment in Bill" account to the subsidiary's equity accounts at December 31, 2019.
4. Calculate the Non-controlling Interest's share of Bill's income for the year ended December 31, 2020.
5. Calculate the "Equity in Bill's Income" to be reported on Joe's books at December 31, 2020.
6. Prepare the consolidating journal entries to be shown on the consolidation worksheet at December 31, 2020.
7. Identify the four components and the respective dollar amounts of the Non-controlling Interest in Bill at December 31, 2020.
Note - Looking for help on how to solve this along with the calculations.
Attachment:- Assignment File.rar