38a. Te relevant relevant initial test "ould "ould be to &omare &omare te e5uity e5uity metod balan&e of te &arryin! value as of 12/31 *$120,0(0,000+ and te 12/31 fair value value *$110,000,000+. *$110,000,000+. 7e&ause te fair value is less tan te &arryin! value, rine "ould be re5uired to test furter to see "eter !ood"ill is imared 38b. 12/31 fair value for Lydia 12/31 Total fair values of assets and liabilities Imlied fair value for !ood"ill arryin! value for !ood"ill Impairment loss 38&. ombined revenues ombined e'enses In&ome before imairment loss )ood"ill imairment loss Net loss 38d. )ood"ill Imairment loss Cons Consol olid idat ated ed bala balanc nce e for for good goodwi will ll as of 123 1231! 1! 38e. onsolidated broad&ast li&enses
$110,000,000 $93,106,000 $16,89#,000 $%0,000,000 $33,106,000
$30,000,000 $22,200,000 $(,800,000 *$33,106,000+ ($25,306,000)
$%0,000,000 $33,106,000 $16, $16,"# "#, ,00 000 0
$1#,36#,000
38f. rine and Lydia onsolidated -orseet 31e& &&ounts evenues 4'enses 45uity in Lydia earnin!s Imairment Loss et in&ome *loss+ etained 4arnin!s 1/1 ividends aid et In&ome
rine In& Lydia o *18,000,000+ *1 *12,000,000+ 10,3%0,000 11,800,000 *1%0,000+ 0 33,106,000 0 2%,306,000 *200,000+ *%2,000,000+ 300,000 2%,306,000
*2,000,000+ 80,000 *200,000+
etained earnin!s 12/31
*26,39#,000+
*2,120,000+
as e&eivables *net+ Invenstment in Lydia o.
260,000 210,000 86,96#,000
109,000 89(,000 0
3%0,000 36%,000 136,000,000 0 22#,1#9,000
1#,01#,000 #%,000,000 1(,%00,000 0 ((,%20,000
7road&ast li&enses ovie library 45uiment *net+ )ood"ill Total assets urrent liabilities Lon!term debt ommon sto& etained earnin!s 12/31 Total liabilities and e5uity
*(%%,000+ *6%0,000+ *22,000,000+ *(,2%0,000+ *1(%,000,000+ *6(,%00,000+ *26,39#,000+ *2,120,000+ *22#,1#9,000+ *((,%20,000+
dustin! 4ntires ebit redit %0,000 1%0,000
2,000,000 80,000
Totals *30,000,000+ 22,200,000 0 33,106,000 2%,306,000 *%2,000,000+ 300,000 2%,106,000
*26,%9#,000+
80,000
%00,000 16,89#,000
8(,0##,000
%0,000
6(,%00,000 8(,11#,000
8(,11#,000
369,000 1,10(,000 0 1#,36#,000 #%,36%,000 1%3,9%0,000 16,89#,000 232,0#9,000 *1,#0%,000+ *29,2%0,000+ 1(%,000,000 *26,39#,000+ *232,0#9,000+
36a. trademars atented te&nolo!y life of atented te&nolo!y nnual amorti:ation
30,000 120,000 8 years 1%,000
Inventory bein! eld *%0,000 ' .(2+ )ross ro;t rate *20,000/%0,000+
36,000 0.# 1#,#00
Inventory bein! eld )ross ro;t rate *#0,000/80,000+
28,000 0.% 1#,000
=yline net in&ome atented te&nolo!y amorti:ation 7e!innin! inventory !ross ro;t re&o!ni:ed 4ndin! inventory !ross ro;t deferred eferral of land !ain on sale 45uity in =yline>s earnin!
*88,000+ 1%,000 *1#,#00+ 1#,000 18,000 *%%,#00+
36b. fair value of sares issued 7oo value of subsidiary ?air value in e'&ess of boo value
#%0,000 300,000 1%0,000
onsolidation entries@ etained 4arnin!s 1/1 *syline+ ost of !oods sold ommon sto& *syline+ dditional aidin atial *syline+ etained earnin!s 1/1 *syline+ Investment in =yline
1#,#00 1#,#00 120,000 30,000 2((,600 #2(,600
Trademars atented Te&nolo!y Investment in syline
30,000 10%,000
Investment in&ome Investment in syline
%%,#00
Investment in syline ividends distributed
20,000
13%,000
%%,#00
20,000
Ater oeratin! e'enses atented te&nolo!y
1%,000
evenues ost of !oods sold
80,000
ost of !oods sold Inventory
1#,000
)ain on sale of land Land
18,000
&&ounts ayable &&ounts re&eivable
6%,000
1%,000
80,000
1#,000
18,000
6%,000 ar"ay and =yline onsolidation -orseet Bear 4ndin! 12/31/201%
&&ounts evenues ost of !oods sold
onsolidat ar"ay =yline ebit *62(,000+ *3%8,000+ 80,000 289,000 19%,000 1#,000
Ater oeratin! e'enses )ain on sale of land Investment In&ome et in&ome
1(0,000 *18,000+ *%%,#00+ *2#1,#00+
etained 4arnin!s 1/1 et In&ome ividends distributed etained earnin!s 12/31
*31#,600+ *292,000+ *2#1,#00+ *88,000+ (0,000 20,000 #86,000 360,000
as and re&eivables inventory Investment in =yline Trademars atented te&nolo!y Land, buildin!s and e5uiment Total assets Liabilities ommon sto& dditional aidIn &aital
13#,000 28,100 %98,000
(%,000
1%,000 18,000 %%,#00
*88,000+ 292,000
1%0,000 112,000 20,000 %0,000 130,000 283,000 (2%,000
30,000 10%,000
*#63,000+ *21%,000+ *#10,000+ *120,000+ *291,000+ *30,000+
6%,000 120,000 30,000
63(,000 1,6%0,000
etained earnin!s Total liabilities and sto&olders> e5uity
*#86,000+ *360,000+ *1,6%0,000+ *(2%,000+
8##,#00
ion 4ntries redit
onsolidated Totals *90%,000+ 9#,#00 #03,600 260,000 0 0 *2#1,#00+
20,000
6%,000 1#,000 618,000
1%,000 18,000
*31#,600+ *2#1,#00+ (0,000 #86,000 219,000 3(9,000
80,000 220,000 902,000 1,800,000 *613,000+ *#10,000+ *291,000+
8##,#00
*#86,000+ *1,800,000+
1. ?air Calue llo&ation =&edule 1/1/201# onsideration transferred 1,000,000 ommon =to& %00,000 etained 4arnin!s 18%,000 Tradename 31%,000 Tradename
31%,000 2% 12,600 Intraentity Inventory transfers =ales Inventory *60D+ Intra. ro;t *30D+ 201# 190,000 %(,000 3#,200 201% 210,000 63,000 3(,800
45uity in =a"n o. 4arnin!s 201# ro;t morti:ation 45uity 4arnin!s
(8,000 *3#,200+ *12,600+ 31,200
201% 201# ro;t 201% ro;t morti:ation 45uity 4arnin!s
8%,000 3#,200 *3(,800+ *12,600+ 68,800
Investment &&ount ost 201# e5uity earnin!s ividends 201# 12/31/201# 201% e5uity earnin!s ividends 201% 12/31/201%
1,000,000 31,200 *2%,000+ 1,006,200 68,800 *2(,000+ 1,0#8,000
2. -orseet adustments etained 4arnin!s =a"n o. ost of !oods sold
3#,200
ommon =to& =a"n o. etained 4arnin!s =a"n o.
%00,000 203,800
3#,200
Investment in =a"n A.
(03,800
Tradename Investment in =a"n. o.
302,#00
45uity in earnin!s of =a"n o. Investment in =a"n o.
68,800
Investment in =a"n o. ividends aid
2(,000
morti:ation 4'ense Tradename
12,600
=ales
302,#00
68,800
2(,000
12,600 210,000
ost of !oods sold ost of !oods sold Inventory
210,000 3(,800 3(,800
