Question

Tomasco and Wooten Companies had the following balance sheets at December 31, 20X8 ($ in thousands):


On January 1, 20X9, Tomasco purchased 100% of the common stock of Wooten for $225,000.
1. Prepare a balance sheet for Tomasco Company immediately after its purchase of Wooten Company.
2. Prepare a balance sheet for the consolidated entity immediately after the purchase of Wooten Company.
3. Suppose Tomasco Company had net income of $250,000 in 20X9 (before recognizing its share of Wooten’s income) and Wooten Company had net income of $45,000 in 20X9. Neither company sold items to the other. What was the 20X9 consolidated netincomes?


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  • CreatedFebruary 20, 2015
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