(Solution) - Exhibit 8 29 presents the separate financial statements at December 31 -(2025 Original AI-Free Solution)

Paper Details

Exhibit 8.29 presents the separate financial statements at December 31, 2015, of Prestige Resorts and its 80%-owned subsidiary Booking, Inc. Two years earlier on January 1, 2014, Prestige acquired 80% of the common shares of Booking for $1,170 million in cash. Booking's 2014 presents the separate financial statements at December 31, 2015, of Prestige Resorts and its 80%-owned subsidiary Booking, Inc. Two years earlier on January 1, 2014, Prestige acquired 80% of the common shares of Booking for $1,170 million in cash. Booking's 2014

net income was $105 million, and Booking paid no dividends in 2014. Booking's 2015 income was $135 million, and it paid $75 million dividends on common stock during 2015. Booking's pre- and postacquisition stock prices do not support the existence of a control premium. Exhibit 8.30 shows the allocation of fair value at the date of acquisition, January 1, 2014. Exhibit 8.31 traces Prestige Resorts' equity method accounting for Booking, Inc. Ignore deferred tax effects.
REQUIRED
a. Complete Exhibit 8.30 to show income effects and balance sheet adjustments to be reflected in the December 31, 2015, Eliminations column of the consolidated worksheet.
b. Complete Exhibit 8.31 to trace the noncontrolling interests in Booking, Inc.'s earnings and net assets.
c. Prepare a worksheet to consolidate Prestige and Booking at December 31, 2015.