on january 1 2004 par corporation acquired 60 percent of the voting common shares of 3387366

On January 1, 2004, Par Corporation acquired 60 percent of the voting common shares of Sue Corporation at an excess of fair value over book value of $1,000,000. This excess was attributed to plant assets with a remaining useful life of five years. For the year ended December 31, 2011, Sue prepared condensed financial statements as follows (in thousands): Condensed Balance Sheet at December 31, 2011 Current assets (except inventory) ………………………… $ 600 Inventories …………………………………………………. 300 Plant assets-net …………………………………………. 5,000 Total assets ……………………………………………… $5,900 Liabilities ………………………………………………… $ 400 Capital stock …………………………………………….. 3,400 Retained earnings ……………………………………….. 2,100 Total equities …………………………………………… $5,900 Condensed Statement of Income and Retained Earnings Sales …………………………………………………… $1,000 Cost of sales ……………………………………………. (500) Other expenses …………………………………………. (300) Net income ………………………………………………. 200 Add: Retained earnings January 1, 2011 ……………… 2,000 Less: Dividends ………………………………………….. 100

 

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