Matador Co. obtained all of the common stock of Tampa Co. on January 1, 2021. As of that date, Tampa had the following trial balance: Debit Credit Accounts payable $ 60,000Accounts receivable $ 50,000Additional paid-in capital 60,000Buildings — net (10-year life) 140,000Cash and short-term investments 70,000Common stock 300,000Equipment — net (8-year life) 240,000Inventory 110,000Land 90,000Long-term liabilities (mature 12/31/25) 180,000Retained earnings, 1/1/21 120,000Supplies 20,000 Totals 20,000 300,000 During 2021, Tampa reported net income of $96,000 while paying dividends of $12,000. During 2022, Tampa reported net income of $132,000 while paying dividends of $36,000. Assume that Matador Co. acquired the common stock of Tampa Co. for $588,000 in cash. As of January 1, 2021, Tampa’s land had a fair market value of $102,000, its buildings were valued at $188,000, and its equipment was appraised at $216,000. Any additional excess cost was attributable to a trademark with a ten-year life. Matador decided to use the equity method for this investment. Required: A. Prepare ALL consolidation worksheet entries for December 31, 2021. B. Prepare ALL consolidation worksheet entries for December 31, 2022. Answer: Calculation:
why do you Amortize the building over 20 year whereas it says 10 year .please explain , also is this answer all the questions from part A & B
Prepare ALL consolidation worksheet entries for December 31, 2021.
Prepare ALL consolidation worksheet entries for December 31, 2022.