Question: Mason Corporation acquired 100 percent ownership of Best Company on

Mason Corporation acquired 100 percent ownership of Best Company on February 12, 20X9. At the date of acquisition, Best Company reported assets and liabilities with book values of $420,000 and $165,000, respectively, common stock outstanding of $80,000, and retained earnings of $175,000. The book values and fair values of Best's assets and liabilities were identical except for land, which had increased in value by $20,000, and inventories, which had decreased by $7,000. The estimated fair value of Best as a whole at the date of acquisition was $295,000.

Required
Give the elimination entries required to prepare a consolidated balance sheet immediately after the business combination assuming Mason acquired its ownership of Best for:
a. $280,000.
b. $251,000.


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  • CreatedMay 23, 2014
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