On July 18, 2014, Patrone Holdings Ltd. paid $1,920,000 to purchase 90 percent of the common shares
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On July 18, 2014, Patrone Holdings Ltd. paid $1,920,000 to purchase 90 percent of the common shares of Smirnoff Inc., and Smirnoff Inc. owes Patrone Holdings Ltd. $240,000 on a note payable. All historical cost amounts are equal to their fair market value on July 18, 2014. Immediately after the purchase, the two companies' balance sheets were as follows:
Required
Prepare a consolidation work sheet.
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Related Book For
Accounting
ISBN: 978-0132690089
9th Canadian Edition volume 2
Authors: Charles T. Horngren, Walter T. Harrison Jr., Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
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