Question: Blank Corporation acquired 100 percent of Faith Corporation s common stock

Blank Corporation acquired 100 percent of Faith Corporation’s common stock on December 31, 20X2, for $189,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:



At the date of the business combination, Faith’s net assets and liabilities approximated fair value except for inventory, which had a fair value of $84,000, and buildings and equipment (net), which had a fair value of $165,000.

Required
a. Give the elimination entry or entries needed to prepare a consolidated balance sheet immediately following the business combination.
b. Prepare a consolidation balance sheetworksheet.


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  • CreatedMay 23, 2014
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