Chapman Company obtains 100 percent of Abernethy Company's stock on January 1.2014. As of that date. Abernethy
Question:
Chapman Company obtains 100 percent of Abernethy Company's stock on January 1.2014. As of that date. Abernethy has the following trial balance:
During 2014, Abemethy reported net income of S130.000 while declaring and paying dividends of $10,000. During 2015, Abemethy reported net income of S110.000 while declaring and paying dividends of $30,000.
Assume that Chapman Company acquired Abernethy's common stock for $500,000 in cash. Assume that the equipment and long-terni liabilities had fair values of S220,000 and $120,000, respectively, on the acquisition date. Chapman uses the initial value method to account for its investment Prepare consolidation worksheet entries for December 31, 2014, and December 31, 2015.
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni