Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 34

Note: Problems 1 through 37 assume the use of the acquisition method.Problems 38 through 40 assume the use of the purchase method.
Bon Air, Inc., purchased 70 percent (2,800 shares) of the outstanding voting stock of Creedmoor Corporation on January 1, 2007, for $250,000 cash.Creedmoor's net assets on that date totaled $230,000, but this balance included three accounts having fair values that differed from their book values:
As of December 31, 2010, the two companies report the following balances:
Prepare a worksheet to consolidate these two companies as of December 31, 2010.Because Bon Air acquired Creedmoor before the effective date of the acquisition method (2009), the purchase method is appropriate.