Question: Clayton Corporation purchased 75 percent of Topple Corporation common stock

Clayton Corporation purchased 75 percent of Topple Corporation common stock and 40 percent of its preferred stock on January 1, 20X6, for $270,000 and $80,000, respectively. At the time of purchase, the fair value of the common shares of Topple held by the noncontrolling interest was $90,000. Topple’s balance sheet contained the following balances:
Preferred Stock ($10 par value) .... $200,000
Common Stock ($5 par value)..... 150,000
Retained Earnings........... 210,000
Total Stockholders’ Equity...... $560,000

Required
Give the elimination entries needed to prepare a consolidated balance sheet immediately after Clayton purchased the Topple shares.


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  • CreatedMay 23, 2014
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