Question

Craft Corporation held 80 percent of Delta Corporation’s outstanding common shares on December 31, 20X2, which it had acquired at underlying book value. When the shares were acquired, the fair value of the noncontrolling interest was equal to 20 percent of Delta’s book value. Balance sheets for the two companies on that date follow:


On January 1, 20X3, Delta issued 4,000 additional shares of its $10 par value common stock to Nonaffiliated Corporation for $45 per share. Craft recorded the change in the book value of its Delta shares as an adjustment to its investment in Delta and an adjustment to its additional paid-in capital.

Required
a. Give the worksheet elimination entry needed in preparing a consolidated balance sheet as of January 1, 20X3, immediately following the sale of shares by Delta.
b. Prepare a consolidated balance sheet worksheet as of the close of business on January 1, 20X3.
c. Prepare a consolidated balance sheet as of the close of business on January 1,20X3.


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  • CreatedMay 23, 2014
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