Business, 29.07.2020 18:01 jonnaevans4856

Problem Company owns 90 percent of Solution Dairy’s stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts: Power Company Pleasantdale Dairy
Assets
Cash & Receivables $133,000 $74,000
Inventory 222,000 94,000
Land 80,000 44,000
Buildings & Equipment (net) 394,000 236,000
Investment in Pleasantdale Stock 263,700
Total Assets $1,092,700 $448,000

Liabilities & Stockholders’ Equity:

Current Payables $71,000 $20,000
Long-Term Liabilities 255,700 165,000
Common Stock 388,000 61,000
Retained Earnings 378,000 202,000
Total Liabilities & Stockholders’ Equity $1,092,700 $448,000

The fair value of the noncontrolling interest at the date of acquisition was determined to be $29,300. The full amount of the increase over book value is assigned to land held by Pleasantdale. At the date of acquisition, Pleasantdale owed Power $15,000 plus $1,100 accrued interest. Pleasantdale had recorded the accrued interest, but Power had not.

Required:
Prepare a consolidated balance worksheet.

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Problem Company owns 90 percent of Solution Dairy’s stock. The balance sheets of the two companies i...

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