On January 1, 2011, Pinnacle Corporation exchanged $3,200,000 cash for 100 percent of the outstanding voting stock
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On January 1, 2011, Pinnacle Corporation exchanged $3,200,000 cash for 100 percent of the outstanding voting stock of Strata Corporation. Pinnacle plans to maintain Strata as a wholly owned subsidiary with separate legal status and accounting information systems.
At the acquisition date, Pinnacle prepared the following fair-value allocation schedule:
Immediately after closing the transaction, Pinnacle and Strata prepared the following post-acquisition balance sheets from their separate financial records.
Prepare a January 1, 2011, consolidated balance sheet for Pinnacle Corporation and its subsidiary
StrataCorporation.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
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