Solved

The Consolidated Balance Sheet of Pasker Corporation and Shishobee Farm,its

Question 50

Essay

The consolidated balance sheet of Pasker Corporation and Shishobee Farm,its 80% owned subsidiary,as of December 31,2014,contains the following accounts and balances:
The consolidated balance sheet of Pasker Corporation and Shishobee Farm,its 80% owned subsidiary,as of December 31,2014,contains the following accounts and balances: Pasker Corporation acquired its interest in Shishobee Farm on January 1,2014,when Shishobee Farm had $450,000 of Capital Stock and $210,000 of Retained Earnings.Shishobee Farm's net assets had fair values equal to their book values when Pasker acquired its interest.No changes have occurred in the amount of outstanding stock since the date of the business combination.Pasker uses the equity method of accounting for its investment. Required: Determine the following amounts: 1.The balance of Pasker's Capital Stock and Retained Earnings accounts at December 31,2014. 2.Cost of Pasker's purchase of Shishobee Farm on January 1,2014. The consolidated balance sheet of Pasker Corporation and Shishobee Farm,its 80% owned subsidiary,as of December 31,2014,contains the following accounts and balances: Pasker Corporation acquired its interest in Shishobee Farm on January 1,2014,when Shishobee Farm had $450,000 of Capital Stock and $210,000 of Retained Earnings.Shishobee Farm's net assets had fair values equal to their book values when Pasker acquired its interest.No changes have occurred in the amount of outstanding stock since the date of the business combination.Pasker uses the equity method of accounting for its investment. Required: Determine the following amounts: 1.The balance of Pasker's Capital Stock and Retained Earnings accounts at December 31,2014. 2.Cost of Pasker's purchase of Shishobee Farm on January 1,2014. The consolidated balance sheet of Pasker Corporation and Shishobee Farm,its 80% owned subsidiary,as of December 31,2014,contains the following accounts and balances: Pasker Corporation acquired its interest in Shishobee Farm on January 1,2014,when Shishobee Farm had $450,000 of Capital Stock and $210,000 of Retained Earnings.Shishobee Farm's net assets had fair values equal to their book values when Pasker acquired its interest.No changes have occurred in the amount of outstanding stock since the date of the business combination.Pasker uses the equity method of accounting for its investment. Required: Determine the following amounts: 1.The balance of Pasker's Capital Stock and Retained Earnings accounts at December 31,2014. 2.Cost of Pasker's purchase of Shishobee Farm on January 1,2014. Pasker Corporation acquired its interest in Shishobee Farm on January 1,2014,when Shishobee Farm had $450,000 of Capital Stock and $210,000 of Retained Earnings.Shishobee Farm's net assets had fair values equal to their book values when Pasker acquired its interest.No changes have occurred in the amount of outstanding stock since the date of the business combination.Pasker uses the equity method of accounting for its investment.
Required: Determine the following amounts:
1.The balance of Pasker's Capital Stock and Retained Earnings accounts at December 31,2014.
2.Cost of Pasker's purchase of Shishobee Farm on January 1,2014.

Correct Answer:

verifed

Verified

Requirement 1:
On the consolidated balan...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q40: A subsidiary can be excluded from consolidation

Q41: The acquisitions method for consolidation requires that

Q42: Passcode Incorporated acquired 90% of Safe Systems

Q43: Parrot Inc.acquired an 85% interest in Sparrow

Q44: The GAAP requires a noncontrolling interest in

Q45: Subsequent to an acquisition,the parent company and

Q46: When a parent acquires 100% of a

Q47: A consolidated income statement must clearly separate

Q48: On June 1,2014,Puell Company acquired 100% of

Q49: Patterson Company acquired 90% of Starr Corporation