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Assume that on January 1, 2012, Sunshine acquires 70% of the common stock of Snowball for $102.200. Sunshine has USD 12.500 recivables from Snowball. Initial
Assume that on January 1, 2012, Sunshine acquires 70% of the common stock of Snowball for $102.200. Sunshine has USD 12.500 recivables from Snowball. Initial record of investment. Equity Method Entries on Sunshine's books: Investment in Scholar Corp. 102.200 Cash 102.200 Balance Sheet of Sunshine and Snowball immediate fater acquisition is as follows: Fair Value Fair Value Sunshine Snowball Snowball increase 50.300 90.000 130.000 60.000 81.000 Balance Sheet Cash Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Investment in Snowball 6.000 21.000 44.000 75.000 30.000 250.000 -80.000 265.000 15.000 410.000 - 150.000 102.200 0 Total Assets 692.500 340.000 Accounts Payable Mortgage Payable Common Stock Retained Earnings 152.500 250.000 80.000 35.000 180.000 40.000 210.000 85.000 Total Liabilities & Equity 692.500 340.000 1. Prepare the consolidation entries (basis consoldiation entry, differntial reclassificaiton entry, other) needed as of December 31, 2012, to complete a consolidation worksheet. 2. Prepare a three-part consolidation worksheet as of December 31, 2012. 3. Prepare the Consolidated Balance Sheet
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