Question

Amber Corporation acquired 60 percent ownership of Sparta Company on January 1, 20X8, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 40 percent of the book value of Sparta Company. Trial balance data at December 31, 20X8, for Amber and Sparta are as follows:


Additional Information
Sparta purchased stock of Row Company on January 1, 20X8, for $30,000 and classified the investment as available-for-sale securities. The value of Row’s securities increased to $40,000 at December 31, 20X8.

Required
a. Give all elimination entries needed to prepare a three-part consolidation worksheet as of December 31, 20X8.
b. Prepare a three-part consolidation worksheet for 20X8 in good form.
c. Prepare a consolidated balance sheet, income statement, and statement of comprehensive income for20X8.


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  • CreatedMay 23, 2014
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