Question

General Corporation acquired 80 percent of Strap Company’s voting common stock on January 1, 20X4, for $138,000. At that date, the fair value of the noncontrolling interest was $34,500. Strap’s balance sheet at the date of acquisition contained the following balances:


At the date of acquisition, the reported book values of Strap’s assets and liabilities approximated fair value.

Required
Give the elimination entry or entries needed to prepare a consolidated balance sheet immediately following the businesscombination.


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  • CreatedMay 23, 2014
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