Pencil Company acquired 70 percent of Stylus Corporation's stock on January 2, 20X3, for $87,500 cash....
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Pencil Company acquired 70 percent of Stylus Corporation's stock on January 2, 20X3, for $87,500 cash. Summarized balance sheet data for the companies on December 31, 20X2, follow: Cash Other Assets Total Debits Current Liabilities Common Stock Retained Earnings Total Credits Pencil Company Book Value $ 214,000 409,000 $623,000 $ 84,000 283,000 256,000 $623,000 Fair Value $ 214,000 409,000 84,000 Stylus Corporation Book Value $ 55,000 134,000 $ 189,000 $ 64,000 55,000 70,000 $189,000 Required: Prepare a consolidated balance sheet immediately following the acquisition. Fair Value $ 55,000 134,000 64,000 Pencil Company acquired 70 percent of Stylus Corporation's stock on January 2, 20X3, for $87,500 cash. Summarized balance sheet data for the companies on December 31, 20X2, follow: Cash Other Assets Total Debits Current Liabilities Common Stock Retained Earnings Total Credits Pencil Company Book Value $ 214,000 409,000 $623,000 $ 84,000 283,000 256,000 $623,000 Fair Value $ 214,000 409,000 84,000 Stylus Corporation Book Value $ 55,000 134,000 $ 189,000 $ 64,000 55,000 70,000 $189,000 Required: Prepare a consolidated balance sheet immediately following the acquisition. Fair Value $ 55,000 134,000 64,000
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Assets Cash Other Assets Total Assets Consolidated Balance Sheet Liabilitie... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
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