Question: Power Company owns 90 percent of Pleasantdale Dairy s stock The

Power Company owns 90 percent of Pleasantdale Dairy’s stock. The balance sheets of the two companies immediately after the Pleasantdale acquisition showed the following amounts:

The fair value of the noncontrolling interest at the date of acquisition was determined to be $30,000. The full amount of the increase over book value is assigned to land held by Pleasantdale. At the date of acquisition, Pleasantdale owed Power $8,000 plus $900 accrued interest. Pleasantdale had recorded the accrued interest, but Power had not.

Prepare and complete a consolidated balance sheetworksheet.
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  • CreatedMay 23, 2014
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