On January 1, 2XX0, Showy Animals Corp. purchased 100% of the outstanding common stock of Armadillo...

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On January 1, 2XX0, Showy Animals Corp. purchased 100% of the outstanding common stock of Armadillo Shells Inc. On the date of the acquisition, Armadillo Shells' identifiable net assets had fair values that approximated their recorded book values. The acquisition resulted in no goodwill. Showy Animals Corp. uses the cost method to account for its investment in Armadillo Shells Inc. The following financial statement information is for Armadillo Shells for the year ended December 31, 2XX1: 2XX1 ZXXO Income Statement Revenues Expenses Net income Statement of Retained Earnings Beginning of year retained earnings Net Income Dividends $300,000 $360,000 141,000 195,000 $159,000 $165,000 $2,040,000 $1,950,000 159,000 165,000 (51,000) (75,000) $2,148,000 $2,040,000 End of year retained earnings Balance Sheet Cash and receivables $705,000 $540,000 Property, plant & equipment, net 2,640,000 2,400,000 Intangible assets 1,515,000 1,350,000 Total assets Current liabilities $492,000 $4,860,000 $4,290,000 $180,000 Noncurrent liabilities 0 1,050,000 Common stock 150,000 150,000 Additional paid in capital Retained earnings 870,000 870,000 2,148,000 2,040,000 Total liabilities and stockholder's equity $3,660,000 $4,290,000 For this question only, assume that Armadillo Shells' identifiable net assets had fair values that approximated their recorded book values, except for equipment which had fair value that was $150,000 higher than the book value and had a remaining useful life of 10 years. The acquisition also resulted in $375,000 of goodwill. What is the amount of the [AD]] entry necessary to prepare the consolidated financial statements for the year ended December 31, 2XX17 On January 1, 2XX0, Showy Animals Corp. purchased 100% of the outstanding common stock of Armadillo Shells Inc. On the date of the acquisition, Armadillo Shells' identifiable net assets had fair values that approximated their recorded book values. The acquisition resulted in no goodwill. Showy Animals Corp. uses the cost method to account for its investment in Armadillo Shells Inc. The following financial statement information is for Armadillo Shells for the year ended December 31, 2XX1: 2XX1 ZXXO Income Statement Revenues Expenses Net income Statement of Retained Earnings Beginning of year retained earnings Net Income Dividends $300,000 $360,000 141,000 195,000 $159,000 $165,000 $2,040,000 $1,950,000 159,000 165,000 (51,000) (75,000) $2,148,000 $2,040,000 End of year retained earnings Balance Sheet Cash and receivables $705,000 $540,000 Property, plant & equipment, net 2,640,000 2,400,000 Intangible assets 1,515,000 1,350,000 Total assets Current liabilities $492,000 $4,860,000 $4,290,000 $180,000 Noncurrent liabilities 0 1,050,000 Common stock 150,000 150,000 Additional paid in capital Retained earnings 870,000 870,000 2,148,000 2,040,000 Total liabilities and stockholder's equity $3,660,000 $4,290,000 For this question only, assume that Armadillo Shells' identifiable net assets had fair values that approximated their recorded book values, except for equipment which had fair value that was $150,000 higher than the book value and had a remaining useful life of 10 years. The acquisition also resulted in $375,000 of goodwill. What is the amount of the [AD]] entry necessary to prepare the consolidated financial statements for the year ended December 31, 2XX17