uate acqdisition Eliminating Entries, Bargain Gain Phelps, Inc. acquires all of the stock of Skelton Company...

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Answer 1

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Part a.	Gain on Aqusition	$ Million

	Current Assets	3
	Non Current Assets	20
	Intangibles	17
	Liabilities	-30
	Total Fair Value of Net Assets Acquired	10
	Cost of Acquisition	8
	Gain on Aqusition	2

		Debit	Credit
	Journal in Phelps Inc	$ Million	$ Million

	Investment in Equity of Subsidiary	8
	Bank		8


Part b.	Elimination Entry	Debit	Credit
		$ Million	$ Million

	Current Assets	3
	Non Current Assets	20
	Intangibles	17
	Liabilities		30
	Investment in Equity of Subsidiary		8
	Gain on Bargain Purchase (To record in OCI)		2

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