Prophet Corporation acquired 75 percent of Seer Corporations voting common stock on December 31, 20X4, for $390,000.
Question:
Prophet Corporation acquired 75 percent of Seer Corporation’s voting common stock on December 31, 20X4, for $390,000. At the date of combination, Seer reported the following:
At December 31, 20X4, the book values of Seer’s net assets and liabilities approximated their fair values, except for buildings, which had a fair value of $80,000 more than book value, and inventories, which had a fair value of $36,000 more than book value. The fair value of the noncontrolling interest was determined to be $130,000 at that date.
Required
Prophet Corporation wishes to prepare a consolidated balance sheet immediately following the business combination. Give the consolidation entry or entries needed to prepare a consolidated balance sheet at December 31, 20X4.
Step by Step Answer:
Advanced Financial Accounting
ISBN: 9781260772135
13th Edition
Authors: Theodore Christensen, David Cottrell, Cassy Budd