Boost Your Grades With Us Today!      Contact us +1 (332)-240-3699

Browse Over 3 Million Questions

We have made it easier for you to place an order

+1 (332) 240-3699

Connect With Us For a Fruitful Engagement


Accounting homework help

For this assignment, use your Fundamentals of Advanced Accounting text to complete the following:

  • Problem 24 on page 194. This problem tests your ability to address several valuation and income determination questions for a business combination involving a noncontrolling interest.

On January 1, Patterson Corporation acquired 80 percent of the 100,000 outstanding voting shares of Soriano, Inc., in exchange for $31.25 per share cash. The remaining 20 percent of Soriano’s shares continued to trade for $30 both before and after Patterson’s acquisition.


At January 1, Soriano’s book and fair values were as follows:



In addition, Patterson assigned a $600,000 value to certain unpatented technologies recently developed by Soriano. These technologies were estimated to have a three-year remaining life.


During the year, Soriano declared a $30,000 dividend for its shareholders. The companies reported the following revenues and expenses from their separate operations for the year ending December 31.



Patterson           Soriano

Revenues        $3,000,000      $1,400,000

Expenses        1,750,000        600,000



a.What amount should Patterson recognize as the total value of the acquisition in its January 1 consolidated balance sheet?


b.What valuation principle should Patterson use to report each of Soriano’s identifiable assets and liabilities in its January 1 consolidated balance sheet?


c.For years subsequent to acquisition, how will Soriano’s identifiable assets and liabilities be valued in Patterson’s consolidated financial statements?


d.How much goodwill resulted from Patterson’s acquisition of Soriano?


e.What is the consolidated net income for the year and what amounts are allocated to the controlling and noncontrolling interests?


f.What is the noncontrolling interest amount reported in the December 31 consolidated balance sheet?


g.Assume instead that, based on its share prices, Soriano’s January 1 total fair value was assessed at $2,250,000. How would the reported amounts for Soriano’s net assets change on Patterson’s acquisition-date consolidated balance sheet?

Do you need a similar assignment written for you from scratch? We have qualified writers to help you.
You can rest assured of an A+ quality paper that is plagiarism free. Order now for an Amazing Discount!
Use Discount Code "NewClient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we write an original paper exclusively for you.

What Students Get

Free Features

We Offer Custom Writing Services with 3 Key Benefits

Affordable Writing Service

We guarantee a perfect price-quality balance to all students. The more pages you order, the less you pay.

The Best Support Service

Get 24⁄7 help with proofreading and editing your draft – fixing your grammar, spelling, or formatting.

Quality Essay Help

Our team of professional writers guarantees top-quality essay writing results.