3. Assume that Pop Corporation acquires 60 percent of the voting common stock of Son Corporation for

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3. Assume that Pop Corporation acquires 60 percent of the voting common stock of Son Corporation for

$6,000,000 and that a consolidated balance sheet is prepared immediately after the acquisition. Would total consolidated assets be equal to their fair values if the parent-company theory were applied? If the entity theory were applied?

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Advanced Accounting

ISBN: 9781292214597

13th Global Edition

Authors: Joseph H. Anthony, Bruce Bettinghaus, Floyd A. Beams, Kenneth Smith

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