Question: EXERCISE 3-1 Workpaper Elimination Entries: 3 Cases Prepare in general journal form the workpaper entries to eliminate Prancer Companys investment in Saltez Company in the

EXERCISE 3-1 Workpaper Elimination Entries: 3 Cases

Prepare in general journal form the workpaper entries to eliminate Prancer Companys investment in Saltez Company in the preparation of a consolidated balance sheet at the date of acquisition for each of the following independent cases:

Saltez Company Equity Balances

Cash, Percent of Stock Owned , Investment cost, Common Stock, Other Contributed Capita, l Retained Earnings

a. 100% $351,000 $160,000 $92,000 $43,000

b. 90 232,000 190,000 75,000 (29,000)

c. 80 159,000 180,000 40,000 (4,000)

Any difference between book value of net assets and the value implied by the purchase price relates to subsidiary property plant and equipment except for case (c). In case (c) assume that all book values and fair values are the same.

Please Kindly Show All Work.Thank You

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Workpaper Elimination Entries: Three Cases Prepare in general journal form the workpaper entries to eliminate Prancer Companys investment in Saltez Company and to allocate any difference between cost...

EXERCISE 31 Workpaper Elimination Entries: 3 Cases LO 8 Prepare in general journal form the workpaper entries to eliminate Prancer Company's investment in Saltez Company in the preparation of a...

EXERCISE 3.1 Workpaper Elimination Entries: 3 Cases LO 8 Prepare in general journal form the workpaper entries to eliminate Prancer Company's investment in Saltez Company in the preparation of a...

Workpaper Elimination Entries: 3 Cases LO 8 Prepare in general journal form the workpaper entries to eliminate Prancer Companys investment in Saltez Company in the preparation of a consolidated...

Prepare in general journal form the workpaper entries to eliminate Prancer Company's investment in Saltez Company in the preparation of a consolidated balance sheet at the date of acquisition for...

Park Company purchased 90% of the stock of Salt Company on January 1, 2014, for $444,640, an amount equal to $14,800 in excess of the book value of equity acquired. This excess payment relates to an...

Pell Company purchased 75% of the stock of Silk Company on January 1, 2007, for $1, 860,000, an amount equal to $60,000 in excess of the book value of equity acquired. All book values were equal to...

does this first question look right, I don't feel very good about it. Upstream and Downstream Sales Pace Company owns 85% of the outstanding common stock of Sand Company and all the outstanding...

I need some help with these questions. I would like the work done out in excel with calculations so I can fully understand what you did if possible. PROBLEM 6-4 Upstream and Downstream Sales Pace...

Prepare in general journal form the workpaper entries to eliminate Prancer Company's investment in Saltez Company in the preparation of a consolidated balance sheet at the date of acquisition for...

What are the sources and causes of complexity in our tax system? Which, if any, of these causes are correctable?

In your opinion, what was the most important concept you learned in this accounting course (list one and only one) Defend your answer

Establishing an anomaly through data mining can be easily detected by examining economic rationale and out of sample data: Group of answer choices Contains short maturities with low durations...

CT Corp Comprehensive Question Canadian Tire Corporation, Limited ( Canadian Tire ) is a family of companies that includes a retail segment and a financial services division, among others. The retail...

1. The evaluation results can be used to change the program.

5. To determine the financial benefits and costs of the program.

7. To compare the costs and benefits of different training programs to choose the best program.