Tom Corporation acquired 70 percent of the outstanding voting shares of Jerry Company for $455,000 on January
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Question:
Tom Corporation acquired 70 percent of the outstanding voting shares of Jerry Company for $455,000 on January 1, 2009, when Jerry’s stockholders’ equity at book value was $650,000. Note that the acquisition price implies that the total fair value of Jerry is $650,000 ($455,000, 70%). All of the assets and liabilities of Son were stated at fair values (equal to book values) when Tom acquired its 70 percent interest.
Instructions
Prepare consolidation working papers for Tom Corporation and Subsidiary for the year ended December 31, 2009.
Related Book For
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
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