Problem $4-37$A $($Algo$)$ Push$-$Down Accounting LO $4-7$

On December $31,20$X$6,$ Print Corporation and Size Company entered into a business combination in which Print acquired all of Size's

common stock for $$971,000.$ At the date of combination, Size had common stock outstanding with a par value of $$115,000,$ additional

equal at the date of combination, except for the following:

The buildings had a remaining life of $18$ years, and the equipment was expected to last another $8$ years. In accounting for the business

combination, Print decided to use push$-$down accounting on Size's books.

During $20$X$7,$ Size earned net income of $$100,000$ and paid a dividend of $$59,000.$ All of the inventory on hand at the end $20$

was sold during $20$X$7.$ During $20$X$8,$ Size earned net income of $$102,000$ and paid a dividend of $$59,000.$

Required:

a$.$ Record the acquisition of Size's stock on Print's books on December $31,20$X$6.$

b$.$ Record any entries that would be made on December $31,20$X$6,$ on Size's books related to the business combination if push$-$down

accounting is employed.

c$.$ Present all consolidating entries that would appear in the worksheet to prepare a consolidated balance sheet immediately after the

combination.

d$.$ Present all entries that Print would record during $207$ related to its investment in Size if Print uses the equity$-$method of accounting

for its investment.

e$.$ Present all consolidating entries that would appear in the worksheet to prepare a full set of consolidated financial statements for the

year $207.$

f$.$ Present all consolidating entries that would appear in the worksheet to prepare a full set of consolidated financial statements for the

year $20$X$8.$