Pencil Company acquired 80 percent of Stylus Corporation's stock on January 2, 20X3, for $97,600 cash....

  

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Pencil Company acquired 80 percent of Stylus Corporation's stock on January 2, 20X3, for $97,600 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 $203,000 409,000 $612,000 $ 83,000 296,000 233,000 $612,000 Fair Value $203,000 409,000 83,000 Stylus Corporation Book Value $ 50,000 135,000 $185,000 $ 63,000 50,000 72,000 $185,000 Required: Prepare a consolidated balance sheet immediately following the acquisition. Fair Value $ 50,000 135,000 63,000 Required: Prepare a consolidated balance sheet immediately following the acquisition. Assets PENCIL COMPANY AND SUBSIDIARY Consolidated Balance Sheet January 2, 20X3 Total Assets Liabilities and Stockholders' Equity Total Liabilities and Stockholders' Equity Pencil Company acquired 80 percent of Stylus Corporation's stock on January 2, 20X3, for $97,600 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 $203,000 409,000 $612,000 $ 83,000 296,000 233,000 $612,000 Fair Value $203,000 409,000 83,000 Stylus Corporation Book Value $ 50,000 135,000 $185,000 $ 63,000 50,000 72,000 $185,000 Required: Prepare a consolidated balance sheet immediately following the acquisition. Fair Value $ 50,000 135,000 63,000 Required: Prepare a consolidated balance sheet immediately following the acquisition. Assets PENCIL COMPANY AND SUBSIDIARY Consolidated Balance Sheet January 2, 20X3 Total Assets Liabilities and Stockholders' Equity Total Liabilities and Stockholders' Equity

Answer rating: 100% (QA)

PENCIL COMPANY AND SUBSIDIARY Consolidated Balance January 2 20x3 Sheet Ass... View the full answer