Moss Company invested $90,000 in TF Partnership on January 1, 20X1, for a 45 percent share of

Question:

Moss Company invested $90,000 in TF on January 1, 20X1, for a 45 percent share of its profits and losses. At December 31, 20X2, Moss reported total assets of $510,000 (excluding its investment in TF) and liabilities of $40,000, and TF reported total assets of $250,000 and liabilities of $30,000.
Required
Present the balance sheets for Moss Company at December 31, 20X2, assuming they are prepared using the following reporting alternatives for its investment in TF Cost method.
b. Equity method.
c. Pro rata consolidation.
d. Consolidation.
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...