On January 1, 20X8, Polo Corporation acquired 75 percent of Stallion Company's voting common stock for...
On January 1, 20X8, Polo Corporation acquired 75 percent of Stallion Company's voting common stock for $300,000. At the time of the combination, Stallion reported common stock outstanding of $200,000 and retained earnings of $150,000, and the fair value of the noncontrolling interest was $100,000. The book value of Stallion's net assets approximated market value except for patents that had a market value of $50,000 more than their book value. The patents had a remaining economic life of ten years at the date of the business combination. Stallion reported net income of $40,000 and paid dividends of $10,000 during 20X8.
a) Provide the journal entries recorded by Polo at December 31, 20X8 on its book if it accounts for its investment in Stallion using equity method.
b) Provide all consolidation entries needed at December 31, 20X8, to prepare consolidated financial statements.
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On January 1, 20X8, Polo Corporation acquired 75 percent of
Stallion Company's voting common stock for...
Public Corporation acquired 90 percent of Station Company’s voting common stock on January 1, 20X1, for...
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Patriot Corporation acquired 80 percent ownership of Seahawk Corporation on January 1, 20X8, for $200,000. At...
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Photo Corporation acquired 75 percent of Shutter Corporation's voting common stock on January 1, 20X2, at...
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reported $71,000 of common stock outstanding and retained earnings
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equipment, which had a fair value $20,000 higher than book value
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Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for...
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Plaza Corporation acquired 100 percent of Square Corporation's voting common stock on December 31, 20X4, for $401,000. At the date of combination, Square reported the following: Assets Liabilities...
Plaza Corporation acquired 100 percent of Square Corporation's voting common stock on December 31, 20X4, for $401,000. At the date of combination, Square reported the following: Assets Liabilities Cash $ 127,000 Current Liabilities $ 74,000 Inventory 107,000 Long-Term Liabilities 238,000 Buildings (net) 428,000 Common Stock 112,000 Retained Earnings 238,000 Total $ 662,000 Total $ 662,000 At December 31, 20X4, the book values of Square's net assets and liabilities approximated their fair values, except for buildings, which had a fair value...
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Free Answer (8 pts) 1.On December 31, 20X8, Parkway Corporation acquired 80 percent of Street Company's...
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