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Keen and Lax Inc Had the Following Balance Sheets on October

Question 20

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Keen and Lax Inc had the following balance sheets on October 31, 2012: Keen and Lax Inc had the following balance sheets on October 31, 2012: Assuming that Keen Purchases 80% of Lax for a consideration of $240,000, prepare: a) the journal entry that Keen Inc. would make to record the acquisition; b) the elimination entry necessary to produce consolidated balance sheet on the acquisition date. Assuming that Keen Purchases 80% of Lax for a consideration of $240,000, prepare: a) the journal entry that Keen Inc. would make to record the acquisition; b) the elimination entry necessary to produce consolidated balance sheet on the acquisition date.

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