Paper Company acquired 100 percent of Scissor Companys outstanding common stock for $370,000 on January 1, 20X8, when the book
Paper Company acquired 100 percent of Scissor Companyâ€™s outstanding common stock for $370,000 on January 1, 20X8, when the book value of Scissorâ€™s net assets was equal to $370,000. Problem 2-25 summarizes the first year of Paperâ€™s ownership of Scissor. Paper uses the equity method to account for investments. The following trial balance summarizes the financial position and operations for Paper and Scissor as of December 31, 20X9:
a. Prepare any equity method journal entry(ies) related to the investment in Scissor Company during 20X9.
b. Prepare a consolidation worksheet for 20X9 in goodform.
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