EXCEL CASE 1On January 1, 2017, Innovus, Inc., acquired 100 percent of

EXCEL CASE 1On January 1, 2017, Innovus, Inc., acquired 100 percent of the common stock of ChipTech Company for $670,000 in cash and other fair-value consideration. ChipTech’s fair value was allocated among its net assets as follows:Fair value of consideration transferred for ChipTech$670,000Book value of ChipTech:Common stock and Additional Paid-In Capital (APIC)$130,000Retained earnings370,000500,000Excess fair value over book value to170,000Trademark (10-year remaining life)$?40,000Existing technology (5-year remaining life)?80,000?120,000Goodwill$?50,000The December 31, 2018, trial balances for the parent and subsidiary follow (there were no intra-entity payables on that date): InnovusChipTechRevenues$ (990,000)$ (210,000)Cost of goods sold 500,000 90,000Depreciation expense 100,000 5,000Amortization expense 55,000 18,000Dividend income (40,000)-0-Net income$ (375,000)$ (97,000)Retained earnings 1/1/18$ (1,555,000)$ (450,000)Net income (375,000) (97,000)Dividends declared250,00040,000Retained earnings 12/31/18$ (1,680,000)$ (507,000)Current assets$ 960,000$ 355,000Investment in ChipTech 670,000Equipment (net) 765,000 225,000Trademark 235,000 100,000Existing technology -0- 45,000Goodwill450,000-0-Total assets$ 3,080,000$ 725,000Liabilities$ (780,000) (88,000)Common stock (500,000) (100,000)Additional paid-in capital (120,000) (30,000)Retained earnings 12/31/18 (1,680,000) (507,000)Total liabilities and equity$ (3,080,000)$ (725,000)RequiredUsing Excel, compute consolidated balances for Innovus and ChipTech. Either use a worksheet approach or compute the balances directly.Prepare a second spreadsheet that shows a 2018 impairment loss for the entire amount of goodwill from the ChipTech acquisition.

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EXCEL CASE 1On January 1, 2017, Innovus, Inc., acquired 100 percent of

EXCEL CASE 1On January 1, 2017, Innovus, Inc., acquired 100 percent of the common stock of ChipTech Company for $670,000 in cash and other fair-value consideration. ChipTech’s fair value was allocated among its net assets as follows:Fair value of consideration transferred for ChipTech$670,000Book value of ChipTech:Common stock and Additional Paid-In Capital (APIC)$130,000Retained earnings370,000500,000Excess fair value over book value to170,000Trademark (10-year remaining life)$?40,000Existing technology (5-year remaining life)?80,000?120,000Goodwill$?50,000The December 31, 2018, trial balances for the parent and subsidiary follow (there were no intra-entity payables on that date): InnovusChipTechRevenues$ (990,000)$ (210,000)Cost of goods sold 500,000 90,000Depreciation expense 100,000 5,000Amortization expense 55,000 18,000Dividend income (40,000)-0-Net income$ (375,000)$ (97,000)Retained earnings 1/1/18$ (1,555,000)$ (450,000)Net income (375,000) (97,000)Dividends declared250,00040,000Retained earnings 12/31/18$ (1,680,000)$ (507,000)Current assets$ 960,000$ 355,000Investment in ChipTech 670,000Equipment (net) 765,000 225,000Trademark 235,000 100,000Existing technology -0- 45,000Goodwill450,000-0-Total assets$ 3,080,000$ 725,000Liabilities$ (780,000) (88,000)Common stock (500,000) (100,000)Additional paid-in capital (120,000) (30,000)Retained earnings 12/31/18 (1,680,000) (507,000)Total liabilities and equity$ (3,080,000)$ (725,000)RequiredUsing Excel, compute consolidated balances for Innovus and ChipTech. Either use a worksheet approach or compute the balances directly.Prepare a second spreadsheet that shows a 2018 impairment loss for the entire amount of goodwill from the ChipTech acquisition.

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