Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date...

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Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date of acquisition, Scrub Company reported assets and liabilities with book values of $428,000 and $174,000, respectively, common stock outstanding of $98,000, and retained earnings of $156.000. The book values and fair values of Scrub's assets and liabilities were identical except for land, which had increased in value by $18,000, and inventories, which had decreased by $9,000 Required: a. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $279,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) b. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $250,000 (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date of acquisition, Scrub Company reported assets and liabilities with book values of $428,000 and $174,000, respectively, common stock outstanding of $98,000, and retained earnings of $156.000. The book values and fair values of Scrub's assets and liabilities were identical except for land, which had increased in value by $18,000, and inventories, which had decreased by $9,000 Required: a. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $279,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) b. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $250,000 (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer rating: 100% (QA)

Event fed 12 Accounts Retained earnings Dr Common stock Br To Investment in scrub compar... View the full answer