Papa Ltd. acquires 80% shares of Child Ltd. for $90,000 with control. The fair value of...

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Papa Ltd. acquires 80% shares of Child Ltd. for $90,000 with control. The fair value of Child's net assets is $100,000 on the acquisition date. Prepare a consolidated statement for Papa Ltd. on the date acquisition given the separate statements for each entity below Papa Ltd. Child Ltd. Assets: Cash Accounts Receivable Inventory Other assets $100,000 15,000 100,000 5,000 Property Plant and Equipment 70,000 $1,000 5,000 30,000 4,000 40,000 Total Assets Liabilities: Accounts Payable Accrued Expenses Other Liability Long term debt Equity: Common Stock Retained Earnings Total Liability & Equity $290.000 S80.000 10,000 5,000 20,000 50,000 3,000 2,000 5,000 10,000 40,000 20,000 $290.000 S80.000 120,000 85,000 Papa Ltd. acquires 80% shares of Child Ltd. for $90,000 with control. The fair value of Child's net assets is $100,000 on the acquisition date. Prepare a consolidated statement for Papa Ltd. on the date acquisition given the separate statements for each entity below Papa Ltd. Child Ltd. Assets: Cash Accounts Receivable Inventory Other assets $100,000 15,000 100,000 5,000 Property Plant and Equipment 70,000 $1,000 5,000 30,000 4,000 40,000 Total Assets Liabilities: Accounts Payable Accrued Expenses Other Liability Long term debt Equity: Common Stock Retained Earnings Total Liability & Equity $290.000 S80.000 10,000 5,000 20,000 50,000 3,000 2,000 5,000 10,000 40,000 20,000 $290.000 S80.000 120,000 85,000

Answer rating: 100% (QA)

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