Professor Corporation acquired 70 percent of Scholar Corporation's common stock on December 31, 20X4, for $102,200....

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Professor Corporation acquired 70 percent of Scholar Corporation's common stock on December 31, 20X4, for $102,200. The fair value of the noncontrolling interest at that date was determined to be $43,800. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Professor Scholar Item Corporation Corporation Cash S 50,300 $ 21,000 Accounts Receivable 90,000 44,000 Inventory 130,000 75,000 Land 60,000 30,000 Buildings & Equipment 410,000 250,000 Less: Accumulated Depreciation (150,000) (80,000) Investment in Scholar Corporation 102.200 Total Assets S692.500 $340.000 Accounts Payable $152,500 $ 35,000 Mortgage Payable 250,000 180,000 Common Stock 80,000 40,000 Retained Earninga Total Liabilities & Stockholders' Equity 210,000 E5,000 $340.000 Se92.500 At the date of the business combination, the book values of Scholar's assets and liabilities approximated fair value eacept Pare 216 for inventory, which had a fair value of $81,000, and buildings and equipment, which had a fair value of S185,000. At December 31, 20X4, Professor reported accounts payable of $12,500 to Seholar, which reported an equal amount in its mocounts receivable. Required e. Give the consolidation entry or entries needed to prepare a consolideted balance sheet immediately following the business combination A Prepare a consolidated balance sheet workaheet e. Prepare a coniolidated balance sheet in good form Professor Corporation acquired 70 percent of Scholar Corporation's common stock on December 31, 20X4, for $102,200. The fair value of the noncontrolling interest at that date was determined to be $43,800. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Professor Scholar Item Corporation Corporation Cash S 50,300 $ 21,000 Accounts Receivable 90,000 44,000 Inventory 130,000 75,000 Land 60,000 30,000 Buildings & Equipment 410,000 250,000 Less: Accumulated Depreciation (150,000) (80,000) Investment in Scholar Corporation 102.200 Total Assets S692.500 $340.000 Accounts Payable $152,500 $ 35,000 Mortgage Payable 250,000 180,000 Common Stock 80,000 40,000 Retained Earninga Total Liabilities & Stockholders' Equity 210,000 E5,000 $340.000 Se92.500 At the date of the business combination, the book values of Scholar's assets and liabilities approximated fair value eacept Pare 216 for inventory, which had a fair value of $81,000, and buildings and equipment, which had a fair value of S185,000. At December 31, 20X4, Professor reported accounts payable of $12,500 to Seholar, which reported an equal amount in its mocounts receivable. Required e. Give the consolidation entry or entries needed to prepare a consolideted balance sheet immediately following the business combination A Prepare a consolidated balance sheet workaheet e. Prepare a coniolidated balance sheet in good form

Answer rating: 100% (QA)

1 Date of controlacquisition 3112204 2 of control 70 3 Analysis of profit Particulars Pre a Retained Earnig 85000 b Adjustments i increase in fair mar... View the full answer