Public Corporation acquired 90 percent of Station Company's voting common stock on January 1, 20X1, for $490, the combination, Station reported common stock outstanding of $123,000 and retained earnings of $382,000, an noncontrolling interest was $54,500. The book value of Station's net assets approximated market value except fc market value of $40,000 more than their book value. The patents had a remaining economic life of ten years at th Required: business combination. Station reported net income of $60,000 and paid dividends of $23,000 during 20X1. accounting for its investment? a. What balance did Public report as its investment in Station at December 31, 20X1, assuming Public uses the ec Balance in investment account b. Prepare the consolidation entry or entries needed to prepare consolidated financial statements at December Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account

Public Corporation acquired 90 percent of Station Company's voting common stock on January 1, 20X1, for $490, the combination, Station reported common stock outstanding of $123,000 and retained earnings of $382,000, an noncontrolling interest was $54,500. The book value of Station's net assets approximated market value except fc market value of $40,000 more than their book value. The patents had a remaining economic life of ten years at th Required: business combination. Station reported net income of $60,000 and paid dividends of $23,000 during 20X1. accounting for its investment? a. What balance did Public report as its investment in Station at December 31, 20X1, assuming Public uses the ec Balance in investment account b. Prepare the consolidation entry or entries needed to prepare consolidated financial statements at December Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter8: Consolidated Tax Returns

Section: Chapter Questions

Problem 36P

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Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $108,500. At that date, the noncontrolling interest had a fair value of $46,500 and Soda reported $70,000 of common stock outstanding and retained earnings of $30,000. The differential is assigned to buildings and equipment, which had a fair value $20,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $35,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: Pop Corporation Soda Company Item Debit Credit Debit Credit Cash & Accounts Receivable $ 15,400 $ 21,600 Inventory 165,000 35,000 Land 80,000 40,000 Buildings & Equipment 340,000 260,000 Investment in Soda Company…
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