On July 1, 2022, when Christ Company's total stockholders' equity was $360,000, Dina Corporation purchased 14,000 shares of Christ's common stock at $30 per share. Christ had 20,000 shares of common stock outstanding both before and after the purchase by Dina, and the book value of Christ's net assets on July 1, 2022 was equal to the fair value. On a consolidated balance sheet prepared at July 1, 2022, goodwill would

Q: On December 31, 2022, Akron, Incorporated, purchased 5 percent of Zip Company's common shares on the…

A: Answer:- A balance sheet basically represents the assets, liabilities and shareholder equity of a…

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A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

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A: Working note: Computation of amount of goodwill or gain from bargain purchase:

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A: 1. Fair value method 2. net assets method

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.