On January 2,2016,Pope Company Acquired 90% of the Outstanding Common

Essay

On January 2,2016,Pope Company acquired 90% of the outstanding common stock of Smithwick Company for $480,000 cash.Just before the acquisition,the balance sheets of the two companies were as follows:
The fair values of Smithwick's assets and liabilities are equal to their book values with the exception of land.
Required:
A.Prepare the journal entry necessary to record the purchase of Smithwick's common stock.
B.Prepare a consolidated balance sheet at the date of acquisition.