On January 1, 2012, Parker Company purchased 90% of the outstanding common stock of Sid Company for

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On January 1, 2012, Parker Company purchased 90% of the outstanding common stock of Sid Company for $180,000. At that time, Sid's stockholders' equity consisted of common stock, $120,000; other contributed capital, $20,000; and retained earnings, $25,000. Assume that any difference between book value of equity and the value implied by the purchase price is attributable to land. On December 31, 2012, the two companies' trial balances were as follows:

On January 1, 2012, Parker Company purchased 90% of the

Required:
A. Prepare a consolidated statements work paper on December 31, 2012.
B. Prepare a consolidated statements work paper on December 31, 2013, assuming trial balances for Parker and Sid on that date were:

On January 1, 2012, Parker Company purchased 90% of the
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Advanced Accounting

ISBN: 978-1119119364

6th edition

Authors: Debra Jeter, Paul Chaney

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