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Assume that Big Co . acquired 7 0 % of Little Co stock on 1 / 1 / 2 3 for $ 3 5 0

Assume that Big Co. acquired 70% of Little Co stock on 1/1/23 for $350,000. The fair
value of the non-controlling interest was $150,000 on that date. Little's book value was
$400,000; they had common stock of $100,000 and Retained Earnings of $300,000.
The entire $100,000 differential was attributed to patents with a 5 year remaining useful
life. In 2023 Little reported earnings of $40,000 and paid no dividends.
On 1/1/23 Big purchased $100,000 of bonds which Little had issued several years earlie
at par value. The bonds mature on 12/31/27(5 years from 1/1/23), and pay interest of
8% annually each 1231. Big purchased the bonds for $92,418.43, a yield of 10%. Big
uses the effective interest method of amortization.
Required: Prepare consolidation/elimination entries for 2023
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