P Corporation paid $440,000 for 80% of S Corporation's $10 par common stock on December 31, 20X6, when S Corporation's stockholders' equity was made up of $300,000 of Common Stock, $100,000 of Other Contributed Capital and $50,000 of Retained Earnings. S's identifiable assets and liabilities reflected their fair values on December 31, 20X6, except for S's inventory which was undervalued by $35,000 and their land which was undervalued by $25,000. Balance sheets for P and S immediately after the business combination are presented below. P Corp. S Corp. Assets Cash Accounts receivable (net) Inventory Land Plant assets (net) Investment in S Total assets 20,000 30,000 185,000 45,000 480,000 440,000 1,200,000 30,000 45,000 165,000 120,000 240,000 170,000 600,000 150,000 280.000 1,200,000 600,000 Liabilities and Equity Current liabilities Common stock Other contributed capital Retained earnings Total liabilities and equity Prepare the consolidated balance sheet as of December 31, 2016 and answer the following 150,000 300,000 90,000 60.000 600,000
P Corporation paid $440,000 for 80% of S Corporation's $10 par common stock on December 31, 20X6, when S Corporation's stockholders' equity was made up of $300,000 of Common Stock, $100,000 of Other Contributed Capital and $50,000 of Retained Earnings. S's identifiable assets and liabilities reflected their fair values on December 31, 20X6, except for S's inventory which was undervalued by $35,000 and their land which was undervalued by $25,000. Balance sheets for P and S immediately after the business combination are presented below. P Corp. S Corp. Assets Cash Accounts receivable (net) Inventory Land Plant assets (net) Investment in S Total assets 20,000 30,000 185,000 45,000 480,000 440,000 1,200,000 30,000 45,000 165,000 120,000 240,000 170,000 600,000 150,000 280.000 1,200,000 600,000 Liabilities and Equity Current liabilities Common stock Other contributed capital Retained earnings Total liabilities and equity Prepare the consolidated balance sheet as of December 31, 2016 and answer the following 150,000 300,000 90,000 60.000 600,000
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter13: Earnings Per Share (eps)
Section: Chapter Questions
Problem 1R: Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8%...
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Transcribed Image Text:P Corporation paid $440,000 for 80% of S Corporation's $10 par common stock on December 31,
20X6, when S Corporation's stockholders' equity was made up of $300,000 of Common Stock,
$100,000 of Other Contributed Capital and $50,000 of Retained Earnings. S's identifiable assets
and liabilities reflected their fair values on December 31, 20X6, except for S's inventory which was
undervalued by $35,000 and their land which was undervalued by $25,000. Balance sheets for P
and S immediately after the business combination are presented below.
P Corp.
S Corp.
Assets
Cash
Accounts receivable (net)
Inventory
Land
Plant assets (net)
Investment in S
Total assets
Liabilities and Equity
Current liabilities
Common stock
Other contributed capital
Retained earnings
Total liabilities and equity
20,000
30,000
185,000
45,000
480,000
440,000
1,200,000
170,000
600,000
150,000
280.000
1,200,000
30,000
45,000
165,000
120,000
240,000
600,000
150,000
300,000
90,000
60.000
600,000
Prepare the consolidated balance sheet as of December 31, 2016 and answer the following
questions by selecting the best response from the dropdown menu.
![• Total assets of the consolidated entity shoul
[Select]
$0
✓ $100,000
$88,000
$110,000
Tata
interest on th
ansaction woul](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d0e6bf9-348c-40ab-ae4c-488cbc0bf710%2F9ac0dd9a-2470-4924-939a-843af5a72760%2Fzlu4z7a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:• Total assets of the consolidated entity shoul
[Select]
$0
✓ $100,000
$88,000
$110,000
Tata
interest on th
ansaction woul
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