On January 1, Year 5, Black Corp. purchased 90% of the common shares of Whyte Inc. On

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On January 1, Year 5, Black Corp. purchased 90% of the common shares of Whyte Inc. On this date, the following differences were observed with regard to specific net assets of Whyte:
Fair value €“ carrying amount differences
Land .................. +50,000
Buildings (net) ............... +20,000
Equipment (net) ............. -10,000
Notes payable .............. +5,000
The non-consolidated and consolidated balance sheets of Black Corp. on January 1, Year 5, are presented below. Whyte€™s retained earnings were $140,000 on this date.
On January 1, Year 5, Black Corp. purchased 90% of

Required:
Prepare the January 1, Year 5, balance sheet of Whyte Inc.

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...
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Modern Advanced Accounting In Canada

ISBN: 9781259066481

7th Edition

Authors: Hilton Murray, Herauf Darrell

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