On January 1, 2017, Pack Corp. acquired all of Slam Corp.s common stock for $500,000. On that
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On January 1, 2017, Pack Corp. acquired all of Slam Corp.’s common stock for $500,000. On that date, the fair values of Slam’s net assets equaled their book values of $400,000. During 2017, Slam paid cash dividends of $8,000. The following balance sheet and income statement accounts are reported on Pack and Slam’s separate financial statements at December 31, 2017:
Required:
What amount of retained earnings will Pack report in its December 31, 2017, consolidated balance sheet?
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To prepare consolidated financial statements we need to eliminate the investment in Slam account and ...View the full answer
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Related Book For 
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
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