Consolidated Balance Sheet with Reciprocal Ownership
Talbott Company purchased 80 percent of Short Company’s stock on January 1, 20X8, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of Short Company. On December 31, 20X9, Short purchased 10 percent of Talbott’s stock. Balance sheets for the two companies on December 31, 20X9, are as follows:
TALBOTT COMPANY Condensed Balance Sheet December 31, 20X9 | |||
Cash Accounts Receivable Inventory Buildings and Equipment (net) Investment in Short Company Common Stock | $ 78,000 120,000 150,000 400,000 352,000 | Accounts Payable Bonds Payable Common Stock Retained Earnings | $90,000 400,000 300,000 310,000 |
Total Assets | $1,100,000 | Total Liabilities and Equities | $1,100,000 |
SHORT COMPANY Condensed Balance Sheet December 31, 20X9 | |||
Cash Accounts Receivable Inventory Buildings and Equipment (net) Investment in Talbott Company Common Stock | $ 39,000 80,000 120,000 300,000 61,000 | Accounts Payable Bonds Payable Common Stock Retained Earnings | $ 60,000 100,000 200,000 240,000 |
Total Assets | $600,000 | Total Liabilities and Equities | $600,000 |
Required
Assuming that the treasury stock method is used in reporting Talbott’s shares held by Short, prepare a consolidated balance sheet worksheet and consolidated balance sheet for December 31, 20X9.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.