Question

Good Corporation acquired 80 percent of the outstanding stock of Morning, Inc., on January 1, 2008, for $1,400,000 in cash, debt, and stock. One of Morning’s buildings, with a 10-year remaining life, was undervalued on the company’s accounting records by $80,000. Also, Morning’s newly developed unpatented technology, with an estimated 10-year life, was assessed to have a fair value of $550,000.
During subsequent years, Morning reports the following:


The following trial balances are for these two companies as of December 31, 2011. Morning owes Good $100,000 as of this date.


Using the purchase method, prepare consolidated balances for this business combination for2011.


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  • CreatedOctober 04, 2014
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