Question: pls answer B Exercise 9-6 (Static) Subsidiary with Preferred Stock Outstanding LO 9-2 Playtown Corporation purchased 75 percent of Sandbox Company common stock and 40

pls answer B

Exercise 9-6 (Static) Subsidiary with Preferred Stock Outstanding LO 9-2 Playtown Corporation purchased 75 percent of Sandbox Company common stock and 40 percent of its preferred stock on January 1 , 206, for $270,000 and $80,000, respectively. At the time of purchase, the fair value of Sandbox's common shares held by the noncontrolling interest was $90,000. Sandbox's balahce sheet contained the following balances: For the year ended December 31, 20X6, Sandbox reported net income of $70,000 and paid dividend5 of $50,000 (which includes the preferred dividend). The preferred stock is cumulative and pays an annual dividend of 8 percent. Required: a. Prepare the journal entries recorded by Playtown for its investments in Sandbox during 206 b. Prepare the consolidation entries needed to prepare the consolidated financial statements for Playtown Corporation as of December 31, 20x6. Complete this question by entering your answers in the tabs below. Prepare the consolidation entries needed to prepare the consolidated financial statements for Playtown Corporation as of December 31 . 206 Note: If no entry is required for a transaction/event, select "No fournal entry required" in the first account field. Consolidation Worksheet Entries Exercise 9-6 (Static) Subsidiary with Preferred Stock Outstanding LO 9-2 Playtown Corporation purchased 75 percent of Sandbox Company common stock and 40 percent of its preferred stock on January 1 , 206, for $270,000 and $80,000, respectively. At the time of purchase, the fair value of Sandbox's common shares held by the noncontrolling interest was $90,000. Sandbox's balahce sheet contained the following balances: For the year ended December 31, 20X6, Sandbox reported net income of $70,000 and paid dividend5 of $50,000 (which includes the preferred dividend). The preferred stock is cumulative and pays an annual dividend of 8 percent. Required: a. Prepare the journal entries recorded by Playtown for its investments in Sandbox during 206 b. Prepare the consolidation entries needed to prepare the consolidated financial statements for Playtown Corporation as of December 31, 20x6. Complete this question by entering your answers in the tabs below. Prepare the consolidation entries needed to prepare the consolidated financial statements for Playtown Corporation as of December 31 . 206 Note: If no entry is required for a transaction/event, select "No fournal entry required" in the first account field. Consolidation Worksheet Entries

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