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2 Tyler Company acquired all of Jasmine Company's outstanding stock on January 1, 2016, for $251,000 in cash. Jasmine had a book value of only
2 Tyler Company acquired all of Jasmine Company's outstanding stock on January 1, 2016, for $251,000 in cash. Jasmine had a book value of only $173,000 on that date. However, equipment (having an eight-year remaining life) was undervalued by $60,800 on Jasmine's financial records. A building with a 20-year remaining life was overvalued by $18,100. Subsequent to the acquisition, Jasmine reported the following: 50 points Dividends Declared s 10,ee0 40.00 20,000 Skipped Net Income 2016 2017 2018 $ 7e,2ee 63,900 35,000 eBook In accounting for this investment, Tyler has used the equity method. Selected accounts taken from the financial records of these two companies as of December 31, 2018, follow: Print Tyler Company Jasmine Company Revenues-operating $(396,00) (167,e0) xpenses Equipment (net) Buildings (net) Common stock Retained earnings, 12/31/18 289,000 392,000 296,000 (290,080) 97,000 56,000 81,900 References (64,800) (585,000) (197,000) Determine the following account balances as of December 31, 2018: a. Investment in Jasmine Company b. Equity in Subsidiary Eanings c. Consolidated Net Income d. Consolidated Equipment (net) e. Consolidated Buildings (net) f. Consolidated Goodwill (net) g. Consolidated Common Stock h. Consolidated Retained Earnings, 12/31/18
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