On January 1, Year 1, Entity A acquired on open market 60% of Entity B's voting interests for $100,000. The carrying amounts of Entity B's assets and liabilities on that date equaled their fair values. The noncontrolling interest is measured at its fair value of $50,000. Entity A and Entity B apply the same accounting policies, and no consolidating adjustments need to be made for intraentity transactions, balances, etc. The following are the trial balances of Entity A and Entity B on January 1, Year 1, immediately before the acquisition: Account Entity B Entity A
Cash $131,000 $130,000
Trade receivables 19,000 9,000
Inventories 31,000 25,000
Current investments --- 17,000
Property, plant, and equipment (net) 103,000 80,000
Trade payables (21,000) (62,000)
Liability for employee benefits (38,000)
(60,000) Noncurrent loans payable (100,000) ---
Common stock (33,000) (40,000)
Additional paid-in capital (37,000) (21,000)
Retained earnings (55,000) (78,000)
Complete Entity A's initial consolidated balance sheet using the information above. Enter the appropriate amounts in the designated cells below. If no entry is necessary, enter a zero (0)
Item Amount immediately after acquisition
1. Cash $161,000.00
2. Property, plant, and equipment (net) $183,000.00
3. Noncontrolling interest $50,000.00
4. Total equity of Entity B $0.00
5. Goodwill $25,000.00
6. Total assets 123
7. Total equity 123