On January 1, 2015, 100% of the outstanding stock of Solo Company was purchased by Plato Corporation
Question:
On January 1, 2015, 100% of the outstanding stock of Solo Company was purchased by Plato Corporation for $3,300,000. At that time, the book value of Solo's net assets equaled $3,000,000. The excess was attributable to equipment with a 10-year life.
The following trial balances of Plato Corporation and Solo Company were prepared on December 31, 2015:
Throughout 2015, sales to Plato Corporation made up 30% of Solo's revenue and produced a 25% gross profit rate. At year-end, Plato Corporation had sold $250,000 of the goods purchased from Solo Company and still owed Solo $30,000. None of the Solo products were in Plato's January 1, 2015, beginning inventory.
Prepare the worksheet necessary to produce the consolidated income statement and balance sheet of Plato Corporation and its subsidiary for the year ended December 31, 2015. Include the determination and distribution of excess schedule.
When talking about the group financial statements the consolidated financial statements include Consolidated Income Statement that a parent must prepare among other sets of consolidated financial statements. Consolidated Income statement that is... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Step by Step Answer:
Advanced Accounting
ISBN: 978-1305084858
12th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng