Kasper Timmin Purchase Differential
The fair value of Timmin’s land was $80,000, and the fair value of its buildings and equipment was $220,000 at the date of acquisition.
a. What amount of retained earnings is reported in the consolidated balance sheet?
b. What percentage ownership of Timmin does Kasper hold?
c. What is the fair value of inventory held by Timmin at January 1, 20X7?
d. What is the fair value of Timmin’s net assets at January 1, 20X7?
e. What amount did Kasper pay to acquire its ownership in Timmin?
f. Give all eliminating entries needed to prepare the consolidated balance sheet for Kasper and Timmin.