Kelompok 6

P4-5
Excess identifiable to net assets

Nick NV acquired a 90 percent interest in Kim NV on January 1, 2014, by paying $9,000,000 cash. At the time, Kim NV’s net
assets were $9,000,000. It was also learned that some of Kim NV’s net assets’ book values were different from their fair
values. Inventory was overvalued by $100,000, and building with remaining useful life of 6 years was undervalued by
$600,000. Separate financial statements of Nick NV and Kim NV at December 31, 2014, are as follows (in thousands).

Nick NV Kim NV
Combined Income and Retained Earnings Statement for the
Year Ended December 31

Sales $ 9,800 $ 4,700

Income from Kim NV $ 450
Cost of sales -$ 6,100 -$ 3,000
Depreciation Expenses -$ 1,000 -$ 500
Other Expenses -$ 150 -$ 700
Net Income $ 3,000 $ 500
Add: Beginning Retained January,1 $ 11,200 $ 4,000
Deduct: Dividends -$ 600 -$ 100
Retained Earnings December,31 $ 13,600 $ 4,400
Balance Sheet at December 31
Cash $ 1,800 $ 100
Account Receivable-Net $ 1,400 $ 600
Inventories $ 2,000 $ 1,600
Other Current Assets $ 1,000 $ 900
Land $ 3,300 $ 2,800
Building-Net $ 4,000 $ 3,400
Equipment-Net $ 2,100 $ 1,900
Investment In Kim NV $ 9,360 $ -
Total Assets $ 24,960 $ 11,300
Account Payable $ 4,100 $ 1,300
Other Liabilities $ 3,860 $ 600
Capital Stock, $10 Par $ 3,400 $ 5,000
Retained Earnings $ 13,600 $ 4,400
Total Liabilities and Equities $ 24,960 $ 11,300

Kim NV’s accounts payable include $200,000 to Nick NV.

REQUIRED
Prepare consolidation workpapers for Kim NV and Subsidiary for the year ended December 31, 2014.
 ADJUSTMENT and ELIMINATION
NICK NV KIM NV CONSOLIDATED
DEBIT CREDIT
Sales $ 9,800.0 $ 4,700.0 $ 14,500.0
Income from Kim NV $ 450.0 2 $ 450.0 $ -
Cost of sales $ -6,100.0 $ -3,000.0 3 $ 100.0 $ -9,000.0
Depreciation Expenses $ -1,000.0 $ -500.0 3 $ 100.0 $ -1,600.0
Other Expenses $ -150.0 $ -700.0 $ -850.0
NCI 5 $ 50.0 $ -50.0
CI $ 3,000.0 $ 500.0 $ 3,000.0
Retained Earning January,1 $ 11,200.0 $ 4,000.0 1 $ 4,000.0 $ 11,200.0
Dividends $ -600.0 $ -100.0 2.5 $ 100.0 $ -600.0
Retained Earnings December,31 $ 13,600.0 $ 4,400.0 $ 13,600.0

Cash $ 1,800.0 $ 100.0 $ 1,900.0

Account Receivable-Net $ 1,400.0 $ 600.0 4 $ 200.0 $ 1,800.0
Inventories $ 2,000.0 $ 1,600.0 3 $ 100.0 1 $ 100.0 $ 3,600.0
Other Current Assets $ 1,000.0 $ 900.0 $ 1,900.0
Land $ 3,300.0 $ 2,800.0 $ 6,100.0
Building-Net $ 4,000.0 $ 3,400.0 1 $ 500.0 $ 7,900.0
Equipment-Net $ 2,100.0 $ 1,900.0 $ 4,000.0
Investment In Kim NV $ 9,360.0 1.2 $ 9,360.0 $ - $ 360.0
Goodwill 1 $ 500.0 $ 500.0
Total $ 24,960.0 $ 11,300.0 $ 27,700.0

Account Payable $ 4,100.0 $ 1,300.0 4 $ 200.0 $ 5,200.0

Other Liabilities $ 3,860.0 $ 600.0 $ 4,460.0
Capital Stock $ 3,400.0 $ 5,000.0 1 $ 5,000.0 $ 3,400.0
Retained Earnings $ 13,600.0 $ 4,400.0 $ 13,600.0
NCI, January ,01, 2014 1 $ 1,000.0 $ 1,000.0 $ 1,040.0
NCI, December ,31, 2014 5 $ 40.0 $ 40.0 $ 1,040.0
Total $ 24,960.0 $ 11,300.0 $ 10,900.0 $ 10,900.0 $ 27,700.0
$ - $ - $ - s $ -

Investment In Kim NV $ 9,000.0 $ 10,000.0 $ 10,000.0

Capital Stock $ 5,000.0 $ 5,000.0
Retained Earning $ 4,000.0 $ 4,000.0
Inventory $ -100.0
Building $ 600.0
$ 9,000.0 $ 9,500.0
Excess $ 1,000.0 $ 500.0 Goodwill

Inventories $ -100.0 1 Year $ 100.0 $ -

Building $ 600.0 6 Year $ -100.0 $ 500.0
Goodwill $ 500.0 $ 500.0
Total $ 1,000.0 $ - $ 1,000.0

Income from Kim ($500 x 90%) $ 450.0

Amortization $ -
Total Income from Kim $ 450.0 $ 500.0 $ 50.0

Invesment In Kim January, 1, 2014 $ 9,000.0

Income From Kim $ 450.0
Devidend $ -90.0
Invesment In Kim December, 31, 2014 $ 9,360.0