The balance sheets of Kim Ltd. and Steinbach Co. on December 31, Year 2, just before the

Question:

The balance sheets of Kim Ltd. and Steinbach Co. on December 31, Year 2, just before the transaction described below, were as follows: 


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On December 31, Year 2, Kim purchased 60% of Steinbach’s outstanding common shares for $135,600 in cash. Coincidentally, the carrying amounts of Steinbach’s assets and liabilities were equal to fair value. 



Required 


(a) Prepare the journal entries, if any, for Kim Ltd. and for Steinbach Co. to record this transaction. 


(b) Prepare balance sheets for Kim Ltd. and for Steinbach Co. at December 31, Year 2, after recording the transaction noted above. 


(c) Prepare a consolidated balance sheet for Kim Ltd. after the transaction noted above.

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Related Book For  book-img-for-question

Modern Advanced Accounting In Canada

ISBN: 9781260881295

10th Edition

Authors: Hilton Murray, Herauf Darrell

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