Essay
Parrot Inc.acquired an 85% interest in Sparrow Corporation on January 2,2011 for $42,500 cash when Sparrow had Capital Stock of $15,000 and Retained Earnings of $25,000.Sparrow's assets and liabilities had book values equal to their fair values except for inventory that was undervalued by $2,000.Balance sheets for Parrot and Sparrow on January 2,2011,immediately after the business combination,are presented in the first two columns of the consolidated balance sheet working papers.
Required:
Complete the consolidation balance sheet working papers for Parrot and subsidiary at January 1,2011.
Correct Answer:
Verified
_TB1535_00...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
_TB1535_00...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q3: A subsidiary can be excluded from consolidation
Q8: Pool Industries paid $540,000 to purchase 75%
Q9: Petra Corporation paid $500,000 for 80% of
Q10: The consolidated balance sheet of Pasker Corporation
Q11: On January 2,2011,Power Incorporated paid $630,000 for
Q13: Patterson Company acquired 90% of Starr Corporation
Q14: On January 1,2011,Parry Incorporated paid $72,000 cash
Q15: On January 1,2005,Myna Corporation issued 10,000 shares
Q17: Perth Corporation acquired a 100% interest in
Q45: Subsequent to an acquisition,the parent company and