On January 1, 2017, Chesapeake Corporation issued common stock with a fair value of $810,000 in exchange

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On January 1, 2017, Chesapeake Corporation issued common stock with a fair value of $810,000 in exchange for 90% of Deardon Corporation's common stock. Following are the January 1, 2017, separate balance sheets of Chesapeake and Deardon immediately following the acquisition, plus fair value information for Deardon's assets and liabilities:
On January 1, 2017, Chesapeake Corporation issued common stock with

Required:
1. Provide the adjustments and elimination entries needed to prepare the post-acquisition January 1, 2017, consolidated balance sheet under the acquisition method.
2. Prepare the January 1, 2017, consolidated balance sheet.

Balance Sheet
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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Financial Reporting and Analysis

ISBN: 978-1259722653

7th edition

Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer

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