Advance Accounting-kindly assist me with the below. Also kindly type out or attach on excel sheet Pas
Question:
Advance Accounting-kindly assist me with the below. Also kindly type out or attach on excel sheet
Pas Corporation acquired 80 % of Sel Corporation's common stock on January 1,2009 for $ 240,000 cash
The stockholders'equity of Sel at this time consisted of $ 150,000 capital stock and $ 50,000 retained earnings
The difference between the price paid by Pas and the underlying equity acquired in Sel was due to a
building overvalued by $10,000 with 20 year useful life, equipment undervalued by $ 20,000 useful life 10 years,
Land undervalued by $ 50,000 and the remainder to unrecorded patent with a 20-year life. Straight line depreciation is used
Required
1) Provide the entries made by Pas on January 1, 2009 and subsequently for the year
To be done on separate worksheet - investor entries
2)Provide the consolidation entries /elimination entries at December 31, 2009
To be done on separate worksheet- elimination entries