On January 1st 2019 The Voldomort and Potter Companies had the following balance sheets Potter Voldomort 2000000

On January 1st 2019 The Voldomort and Potter Companies had the following balance sheets

  

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Potter Voldomort 2000000 100000 Cash inventory 1000000 100000 building 1000000 50000 accumulated dep. Build -400000 -20000 equipment 1000000 80000 accumulated dep. Equip -20000 -40000 total assets 4580000 270000 accounts payable 1000000 70000 common stock $1 par 580000 100000 additional paid in capita 2000000 50000 retained earnings 1000000 50000 On January 2nd Voldomort purchased 90% of the outstanding shares of Potter Company for $400,000 On January 2nd Potters equipment was worth 25000 and its building was worth $70000 All other assets and liabilites of Potter have book values equal to fair market values Potter Voldomort 2000000 100000 Cash inventory 1000000 100000 building 1000000 50000 accumulated dep. Build -400000 -20000 equipment 1000000 80000 accumulated dep. Equip -20000 -40000 total assets 4580000 270000 accounts payable 1000000 70000 common stock $1 par 580000 100000 additional paid in capita 2000000 50000 retained earnings 1000000 50000 On January 2nd Voldomort purchased 90% of the outstanding shares of Potter Company for $400,000 On January 2nd Potters equipment was worth 25000 and its building was worth $70000 All other assets and liabilites of Potter have book values equal to fair market values

Answer rating: 100% (QA)

A No journal entry recorded by potter B Adjustments Voldomort Potter ... View the full answer