On June 30, 20X9, Bull Corporation acquired 70 percent of Cow Company's common stock. The fair...

 

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On June 30, 20X9, Bull Corporation acquired 70 percent of Cow Company's common stock. The fair value of the noncontrolling interest was $24,000 on that date. Summarized balance sheet data for the two companies immediately after the stock purchase are as follows: Item Cash Accounts Receivable Inventory Building & Equipment (net) Investment in Cow Company Total Accounts Payable Bonds Payable Common Stock Retained Earnings Total Bull Corporation Book Value $ 50,000 $ 25,000 $ 90,000 $300,000 $ 80,000 $545,000 $ 40,000 $335,000 $ 75,000 $ 95,000 $545,000 Cow Company Book Value $ 10,000 $ 12,500 $ 30,000 $100,000 $152,500 $ 12,500 $ 55,000 $ 40,000 $ 45,000 $152,500 Fair Value $ 10,000 $ 12,500 $ 35,000 $120,000 $177,500 $ 12,500 $ 35,000 $ 47,500 Required: Give the consolidation entries required to prepare a consolidated balance sheet immediately after the purchase of Cow Company shares. NOTE: Please include your name on the work you submit. On June 30, 20X9, Bull Corporation acquired 70 percent of Cow Company's common stock. The fair value of the noncontrolling interest was $24,000 on that date. Summarized balance sheet data for the two companies immediately after the stock purchase are as follows: Item Cash Accounts Receivable Inventory Building & Equipment (net) Investment in Cow Company Total Accounts Payable Bonds Payable Common Stock Retained Earnings Total Bull Corporation Book Value $ 50,000 $ 25,000 $ 90,000 $300,000 $ 80,000 $545,000 $ 40,000 $335,000 $ 75,000 $ 95,000 $545,000 Cow Company Book Value $ 10,000 $ 12,500 $ 30,000 $100,000 $152,500 $ 12,500 $ 55,000 $ 40,000 $ 45,000 $152,500 Fair Value $ 10,000 $ 12,500 $ 35,000 $120,000 $177,500 $ 12,500 $ 35,000 $ 47,500 Required: Give the consolidation entries required to prepare a consolidated balance sheet immediately after the purchase of Cow Company shares. NOTE: Please include your name on the work you submit.

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Answer Net Asset Cash Accounts receivable inventory Bu... View the full answer