Question: Price Company purchased 90 of the outstanding common stock of

Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2009, for $450,000. At that time, Score Company had stockholders’ equity consisting of common stock, $200,000; other contributed capital, $160,000; and retained earnings $90,000. On December 31, 2013, trial balances for Price Company and Score Company were as follows:

Price Company’s note receivable is receivable from Score Company. Interest of $7,500 was paid by Score to Price during 2013. Any difference between book value and the value implied by the purchase price relates to goodwill.

Prepare a consolidated statements workpaper on December 31,2013.

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  • CreatedMarch 13, 2015
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