E 11-8 Push-down capitals under parent-company and entity theories Pow Inc. acquired an 80 percent interest in
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E 11-8 Push-down capitals under parent-company and entity theories Pow Inc. acquired an 80 percent interest in Wow Inc. for $280,000 in cash on January 1, 2014. At the time, Wow had overvalued inventory of $20,000, overvalued account receivables of $50,000, and overvalued plant assets of $20,000.
Wow’s equity were $200,000 in common stock and $50,000 in retained earnings.
REQuIRED 1. Calculate the total amount of push-down capital under the parent-company theory.
2. Calculate the total amount of push-down capital under the entity theory.
412 CHAPTER 11
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Related Book For
Advanced Accounting
ISBN: 9781292214597
13th Global Edition
Authors: Joseph H. Anthony, Bruce Bettinghaus, Floyd A. Beams, Kenneth Smith
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