Question: This exercise is a continuation of E5 13 Proud Corporation acquired

This exercise is a continuation of E5-13. Proud Corporation acquired 80 percent of Stergis Company’s voting stock on January 1, 20X3, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Stergis at that date. Proud uses the equity method in accounting for its ownership of Stergis. On December 31, 20X4, the trial balances of the two companies are as follows:

a. Give all elimination entries required on December 31, 20X4, to prepare consolidated financial statements.
b. Prepare a three-part consolidation worksheet as of December 31,20X4.

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  • CreatedMay 23, 2014
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