Plump Corporation acquired 100 percent of Slim Corporations common stock on December 31, 20X2, for $189,000. Data
Question:
Plump Corporation acquired 100 percent of Slim Corporation’s common stock on December 31, 20X2, for $189,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:
At the date of the business combination, Slim’s net assets and liabilities approximated fair value except for inventory, which had a fair value of $84,000, and buildings and equipment (net), which had a fair value of $165,000.
Required
a. Give the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination.
b. Prepare a consolidation balance sheet worksheet.
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Related Book For
Advanced Financial Accounting
ISBN: 9781260772135
13th Edition
Authors: Theodore Christensen, David Cottrell, Cassy Budd
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