On January 2, 2014, Press Company purchased on the open market 90% of the outstanding common stock

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On January 2, 2014, Press Company purchased on the open market 90% of the outstanding common stock of Sensor Company for $800,000 cash. Balance sheets for Press Company and Sensor Company on January 1, 2014, just before the stock acquisition by Press Company, were:

On January 2, 2014, Press Company purchased on the open

The full implied value of Sensor Company is to be "pushed down" and recorded in Sensor Company's books. The excess of the implied fair value over the book value of net assets acquired is allocated as follows: To equipment, 30%; to land, 20%; to patents, 50%.
Required:
A. Prepare the entry on Sensor Company's books on January 2, 2014, to record the values implied by the 90% stock purchase by Press Company.
B. Prepare a consolidated balance sheet workpaper on January 1, 2014.

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...
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Advanced Accounting

ISBN: 978-1119119364

6th edition

Authors: Debra Jeter, Paul Chaney

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