Question

The following are the balance sheets for Plate and Salad immediately prior to Plate’s September 1, 2014, acquisition of Salad:


Consider the following cases:
Case 1
Plate buys 100% of Salad’s common stock for $180,000 cash. The fair value of Salad’s assets and liabilities equal their book value.

Case 2
Plate buys 100% of Salad’s common stock for $210,000 cash. The fair value of Salad’s land is $20,000 and of its buildings and equipment is $110,000. All other fair values equal book values.

Required:
1. Prepare the September 1, 2014, journal entry on Plate’s books to record the acquisition of Salad.
2. Prepare the elimination entries needed to prepare a consolidated balance sheet immediately after the acquisition.
3. Prepare the consolidated balance sheet immediately after theacquisition.


$1.99
Sales0
Views69
Comments0
  • CreatedSeptember 10, 2014
  • Files Included
Post your question
5000