Pencil Company acquired 70 percent of Stylus Corporation's stock on January 2, 20X3, for $87,500 cash....

Transcribed Image Text:

Pencil Company acquired 70 percent of Stylus Corporation's stock on January 2, 20X3, for $87,500 cash. Summarized balance sheet data for the companies on December 31, 20X2, follow: Cash Other Assets Total Debits Current Liabilities Common Stock Retained Earnings Total Credits Pencil Company Book Value $ 214,000 409,000 $623,000 $ 84,000 283,000 256,000 $623,000 Fair Value $ 214,000 409,000 84,000 Stylus Corporation Book Value $ 55,000 134,000 $ 189,000 $ 64,000 55,000 70,000 $189,000 Required: Prepare a consolidated balance sheet immediately following the acquisition. Fair Value $ 55,000 134,000 64,000 Pencil Company acquired 70 percent of Stylus Corporation's stock on January 2, 20X3, for $87,500 cash. Summarized balance sheet data for the companies on December 31, 20X2, follow: Cash Other Assets Total Debits Current Liabilities Common Stock Retained Earnings Total Credits Pencil Company Book Value $ 214,000 409,000 $623,000 $ 84,000 283,000 256,000 $623,000 Fair Value $ 214,000 409,000 84,000 Stylus Corporation Book Value $ 55,000 134,000 $ 189,000 $ 64,000 55,000 70,000 $189,000 Required: Prepare a consolidated balance sheet immediately following the acquisition. Fair Value $ 55,000 134,000 64,000

Answer rating: 100% (QA)

Assets Cash Other Assets Total Assets Consolidated Balance Sheet Liabilitie... View the full answer