80% COST MODEL (Full Goodwill)
Worksheet for Consolidated Financial Statements
December 31, 2024
Income Statement Parent Corp Son Corp. Debit Credit Consolidated
Sales 450,000 300,000 750,000
Dividend Revenue 32,000 32,000 5 0
Total Revenue 482,000 300,000 750,000
Cost of Goods Sold 180,000 160,000 340,000
Depreciation expense 50,000 20,000 5,000 4 75,000
Interest expense 1,000 4 1,000
Goodwill impairment loss 0
Other expenses 60,000 45,000 105,000
Total Cost and Expenses 290,000 225,000 521,000
Net Income 192,000 75,000 229,000
NCI in Net Income - Son 13,800 6 (13,800)
Net Income to Retained Earnings 192,000 75,000 215,200
Statement of Retained Earnings
Retained earnings, 1/1
Parent Corporation 404,000 11,300 5 16,000 5 408,700
Son Corporation 120,000 120,000 2 0
Net Income from above 192,000 75,000 215,200
Total 596,000 195,000 623,900
Dividends paid
Parent Corporation 60,000 60,000
Son Corporation 40,000 40,000 6 0
Retained earnings, 12/31 to Balance Sheet 536,000 155,000 563,900
Balance Sheet
Cash 221,000 85,000 306,000
Accounts receivable 150,000 80,000 230,000
Inventory 180,000 90,000 5,000 3 5,000 4 270,000
Land 175,000 40,000 6,000 3 221,000
Equipment 200,000 150,000 350,000
Buildings 600,000 450,000 180,000 3 870,000
Discount on Bonds Payable 4,000 3 2,000 4 2,000
Goodwill 12,500 3 3,125 4 9,375
Investment in Son Corporation 310,000 16,000 1 256,000 2 0
70,000 3
Total 1,836,000 895,000 2,258,375
Accumulated depreciation - equipment 125,000 85,000 80,000 3 20,000 4 150,000
Accumulated depreciation - buildings 375,000 255,000 160,000 3 460,000
10,000 4
Accounts payable 100,000 100,000 200,000
Bonds Payable 200,000 100,000 300,000
Ordinary shares, P10 par 500,000 200,000 200,000 2 500,000
Retained earnings, from above 536,000 155,000 563,900
Non-Controlling Interest 8,000 6 64,000 2 84,475
2,825 4 17,500 3
13,800 6
Total 1,836,000 895,000 687,425 687,425 2,258,375
Full Goodwill
Consideration transferred ### Consideration transferred
Fair Value of NCI 77,500.00 FV of NCI
Fair Value of Son Coprporation (100%) ### FV of Subsidiary
Less: Book Value of Shareholders' Equity of Son Less: BV of shareholders' equity of Son
Ordinary shares 200,000.00 Allocated Excess
Retained earnings 100,000.00 ### Less: Over/undervaluation of assets an
Allocated excess 87,500.00 Inventory
Less: Over/under valuation of assets liabilities: Land
Increase in inventory 5,000.00 Equipment (net)
Increase in land 6,000.00 Building (net)
Increase in equipment 80,000.00 Bonds payable
Decrease in buidings -20,000.00 Goodwill
Decrease in bonds payable 4,000.00 75,000.00
Goodwill 12,500.00
Amortization of Excess Over/Under Life 1st Year 2nd Year
Inventory 5,000.00 1 5,000.00
Equipment (net) 80,000.00 8 10,000.00 10,000.00
Buildings (net) - 20,000.00 4 - 5,000.00 - 5,000.00
Bonds payable 4,000.00 4 1,000.00 1,000.00
69,000.00 11,000.00 6,000.00
2023 2024
Net Income of Son 50,000.00 75,000.00
Amortization of allocated 11,000.00 6,000.00
Balance 39,000.00 69,000.00
NCI rate 20% 20%
Total 7,800.00 13,800.00
Less: NCI on impairment loss
3,125 X 20% 625.00
NCI in Net Income 7,175.00 13,800.00
ration transferred 310,000.00
77,500.00
387,500.00
of shareholders' equity of Son 300,000.00
87,500.00
er/undervaluation of assets and liabilities assumed:
5,000.00
6,000.00
quipment (net) 80,000.00
- 20,000.00
onds payable 4,000.00 75,000.00
12,500.00
