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7 Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date of acquisition, Scrub Company reported assets and liabilities
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Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date of acquisition, Scrub Company reported assets and liabilities with book values of $426,000 and $182,000, respectively, common stock outstanding of $82,000, and retained earnings of $162,000. The book values and fair values of Scrub's assets and liabilities were identical except for land, which had increased in value by $17,000, and inventories, which had decreased by $7,000o. Required: a. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $269,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries Record the basic consolidation entry Note: Enter debits before credits. Event Accounts Debit CreditStep by Step Solution
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