Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2016, for

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Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2016, for $450,000. At that time, Score Company had stockholders? equity consisting of common stock, $200,000; other contributed capital, $160,000; and retained earnings, $90,000. On December 31, 2020, trial balances for Price Company and Score Company were as follows:

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Price Company?s note receivable is receivable from Score Company. Interest of $7,500 was paid by Score to Price during 2020. Any difference between book value and the value implied by the purchase price relates to goodwill.

Required:

Prepare a consolidated statements workpaper on December 31, 2020.

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Advanced Accounting

ISBN: 978-1119373209

7th edition

Authors: Debra C. Jeter, Paul K. Chaney

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