Question

Groomer purchased a controlling interest in three companies during 2014. Financial information concerning the three companies follows:


All other assets and liabilities on the balance sheet are at FMV.
Groomer purchased 8,000, 600, and 1,500 shares of Company X, Company Y, and Company Z, respectively. The share prices and cash payments follow.
Company X 8,000 × $10.60 = $84,800
Company Y 600 × 40.00 = 24,000
Company Z 1,500 × 11.00 = 16,500

REQUIRED:
For each company, prepare the journal entry to record the acquisition by Groomer. Then, for each company, prepare a journal entry that could have been recorded to include the individual assets and liabilities on the books ofGroomer.


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  • CreatedAugust 19, 2014
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