? Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100

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Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trial balance: Debit Credit Cash 500 Accounts receivable 600 Inventory Buildings (net) (5 year life) Equipment (net) (2 year life) Land 900 1,600 1,000 900 Accounts payable 400 Long-term liabilities (due 12/31/22) Common stock 1,900 1,000 Additional paid-in capital Retained earnings 700 1,500 Total $5,500 $5,500 Net income and dividends reported by Clark for 2020 and 2021 follow: 2020 2021 Net income $120 $140 Dividends 40 50 Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trial balance: Debit Credit Cash 500 Accounts receivable 600 Inventory Buildings (net) (5 year life) Equipment (net) (2 year life) Land 900 1,600 1,000 900 Accounts payable 400 Long-term liabilities (due 12/31/22) Common stock 1,900 1,000 Additional paid-in capital Retained earnings 700 1,500 Total $5,500 $5,500 Net income and dividends reported by Clark for 2020 and 2021 follow: 2020 2021 Net income $120 $140 Dividends 40 50

Answer rating: 100% (QA)

Answer is 1300 Land will be recognized at fair value in consolid... View the full answer