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C. Prepare the journal entry assuming Minneapolis Manufacturing Inc. decided to purchase 75% of Bloomington Re-Bar...

C. Prepare the journal entry assuming Minneapolis Manufacturing Inc. decided to purchase 75% of Bloomington Re-Bar Company for $9,000,000 in a Stock Acquisition.

D. For scenario C. (75% Stock Acquisition - above) prepare a CAD. In addition, prepare the necessary workpaper elimination entries necessary to complete a consolidated financial statement workpaper.

Note: Bloomington Re-Bar Company’s Stockholders’ Equity consists of the following:

Common Stock $ 25,000 APIC $2,975,000 Retained Earnings $4,960,000

business   accounting   
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Cash Accounts Receivable Invento Buildin Equipment Land Accounts Payable Mort Patent Envionment Liabilit Book Value Fair Value S 450,000.00 450,000.00 S 1,950,000.00S 1,785,000.00 S 3,650,000.00S 3,250,000.00 S 2,500,000.00 2,600,000.00 S 3,250,000.00S 2,200,000.00 S 110,000.00 1,500,000.00 S 2,850,000.00 S 3,125,000.00 S 1,100,000.00 1,100,000.00 Payable S 6,000,000.00 $15,860,000.00 $19,010,000.00 Part 1 Investment in Bloomington Re-Bar Company $19,010,000.00 ative Goodwill Cash Investment recorded S 6,010,000.00 $13,000,000.00 Part 2 $11,910,000.00 Total Assets Total Liabilities S 3950,000.00 S 7,960,000.00 Investment in Bloomington s 7,960,000.00 Re-Bar Company Goodwill Cash (Investment recorded) S 5,040,000.00 $13,000,000.00Part 3 Investment in Bloomington Re-Bar Company Goodwill s 5,970,000.00 S 3,030,000.00 S 9,000,000.00 (Investment recorded) There shall be no elemination entries as data of acquirer not given

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