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 eliminating 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.