Q: On January 1, 2015, Pruitt Company issued 25,500
On January 1, 2015, Pruitt Company issued 25,500 shares of its common stock in exchange for 85% of the outstanding common stock of Shah Company. Pruitt’s common stock had a fair valu...
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The two following separate cases show the financial position of a parent company and its subsidiary company on November 30, 2014, just after the parent had purchased 90% of the subsidiaryâ€...
See AnswerQ: On January 1, 2014, Perry Company purchased 8,000
On January 1, 2014, Perry Company purchased 8,000 shares of Soho Company’s common stock for $120,000. Immediately after the stock acquisition, the statements of financial position of...
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Balance sheets for P Company and S Company on August 1, 2014, are as follows: Required: Prepare a workpaper for a consolidated balance sheet for P Company and its subsidiary on August 1, 2014, takin...
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(Note that this problem is the same as Problem 4-9, but assuming the use of the partial equity method.) December 31, 2014, trial balances for Pledge Company and its subsidiary Stom Company follow: P...
See AnswerQ: On January 2, 2014, Phillips Company purchased 80% of
On January 2, 2014, Phillips Company purchased 80% of Sanchez Company and 90% of Thomas Company for $225,000 and $168,000, respectively. Immediately before the acquisitions, the balance sheets of the...
See AnswerQ: On January 1, 2014, Pat Company purchased 90% of
On January 1, 2014, Pat Company purchased 90% of the outstanding common stock of Solo Company for $236,000 cash. The balance sheet for Pat Company just before the acquisition of Solo Company stock, al...
See AnswerQ: On July 31, 2014, Ping Company purchased 90% of
On July 31, 2014, Ping Company purchased 90% of Santos Company’s common stock for $2,010,000 cash. Immediately after the acquisition, the two companies’ balance she...
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Balance sheets for Prego Company and Sprague Company as of December 31, 2013, follow: The fair values of Sprague Company’s assets and liabilities are equal to their book values....
See AnswerQ: On January 1, 2015, Pruitt Company issued 25,500
On January 1, 2015, Pruitt Company issued 25,500 shares of its common stock ($2 par) in exchange for 85% of the outstanding common stock of Shah Company. Pruitt’s common stock had a...
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