Question - The trial balances for Walla Corporation and AU Inc. at December 31, Year 4, just before the transaction described below, were as follows:
|
|
Walla
|
Au Inc.
|
|
Current assets
|
$280,000
|
$190,000
|
|
Land
|
600,000
|
450,000
|
|
Other tangible assets
|
500,000
|
270,000
|
|
Liabilities
|
400,000
|
310,000
|
|
Common shares
|
200,000
|
50,000
|
|
Retained earnings, Jan 1, Year 4
|
600,000
|
240,000
|
|
Revenue
|
800,00
|
640,000
|
|
Expenses
|
620,000
|
330,000
|
On December 31, Year 4, Walla purchased all of the outstanding shares of Au Inc. by issuing 20,000 common shares with a market value of $36 per share. The carrying amounts of Au Inc.'s assets and liabilities were equal to fair value except for the following:
Fair Value
Land $500,000
Liabilities 330,000
Required: What are the balances for the land, goodwill, investment in common shares of Au Inc., liabilities, common shares, and revenues after the transaction noted above on
a) Walla's separate entity financial statements?
b) Au Inc.'s separate entity financial statements?
c) Walla's consolidated financial statements?