Silver Corporation Acquired 100 Percent of Bronze Company on January

Essay

Silver Corporation acquired 100 percent of Bronze Company on January 1,20X5,for $350,000.Following are selected account balances from Silver and Bronze Corporation as of December 31,20X5:

Additional Information:
1.On January 1,20X5 the fair market value of Bronze's assets equaled their book value with the exception of Plant Assets (with an estimated economic life of 6 years)which had a fair market value in excess in Bronze's depreciable assets of $33,000.
2.Silver used the equity-method in accounting for its investment in Bronze.
3.Detailed analysis of receivables and payables showed that Bronze owed Silver $10,000 on December 31,20X5.
Required:
a.Give all journal entries recorded by Silver with regard to its investment in Bronze during 20X5.
b.Give all consolidating entries needed to prepare a full set of consolidated financial statements for 20X5.
c.Prepare a three-part consolidation worksheet as of December 31,20X5.
Problem 66 (continued)