Question

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.


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  • CreatedOctober 04, 2014
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