According to the CAD schedule: *

The implied value is less than the book value by $160,000, thus land should be credited by $160,000

The implied value exceeds the book value by $160,000, thus Land should be debited by $160,000

The book value exceeds the implied value by $160,000, thus land should be debited by $160,000

None of the above

The working paper elimination entry should include: *

A credit to Investment in S and a credit to NCI by $3,744,000 and $374,400 respectively

A Debit to Investment in S by $3,744,000 and a Credit to Cash by $3,744,000

A Debit to Common Stock and Other Contributed Capital by $1,440,000 and $960,000 respectively

None of the above

The consolidated balance sheet for P and S Companies on the date of acquisition will include: *

Cash $2,256,000

Cash $6,000,000

Cash $256,000

None of the above

The consolidated balance sheet for P and S Companies on the date of acquisition will include: *

Investment in S company $3,744,000

Receivables $480,000

Difference between Implied Value & Book Value $200,000

None of the above

The consolidated balance sheet for P and S Companies on the date of acquisition will include: *

Liabilities $8,000,000

Other Contributed Capital $1,920,000

Common Stock $4,320,000

None of the above

Stock Acquisition Use the following to answer the five questions below On January 31, 2021, P Company acquired 90% of the outstanding common stock of Company for $3,744.000 cash. Just before the acquisition, the balance sheets of the two companies were as follow: P Company s Company Cash 4,000,000 2,000,000 Receivables 320,000 160,000 Inventory 5,600,000 2,800,000 PPE (net) 6,080.000 3.040.000 16,000,000 8,000,000 Liabilities 8,000,000 4,000,000 Common Stock (520 par value) 2,880.000 1,440,000 Other Contributed Capital 1,920,000 960,000 Retained Earnings 3.200.000 1.600,000 16,000,000 8,000,000 Assume that any difference between the book value of net assets and the value implied by the purchase price relates to subsidiary land