Shark Company purchased 70% interest in Fish Company on July 1, 2014. Consideration for the transaction was $791,875 cash. At the time of the purchase, the remaining shares of Fish (30% percent) were owned by various parties worth $339,375.
At the time of the acquisition, the excess of $124,500 was allocated to the patent not recorded on Fish's financial records. The patent is expected to a have remaining life of 5 years. All other excess was allocated to goodwill.
Use the Assessment 2 Template to prepare a consolidation worksheet for Shark and Fish for the year ending December 31, 2014.
Notes for the completion of the worksheet:
• Fish's income was earned evenly throughout the year.
• Fish pays dividends on a quarterly basis.
• There is no significant change in the trading price in Fish's stock.
Attachment:- _Excel-Spreadsheet-.xlsx