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Company A acquired 1 0 0 % of Company B ' s voting stock on January 1 , 2 0 1 8 by issuing 1

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Company A acquired 100% of Company B's voting stock on January 1,2018 by issuing 10,000 shares of its $10 par value common stock.
Company A's common stock had a fair value of $14 per share at that time. Company B's stockholder's equity was $105,000 at date of acquisition.
The trademark was undervalued by $10,000. It has an indefinite life. Equipment (with a 5 year life) was undervalued by $5,000. A customer list that had
been created internally had an estimated useful life of 20 years was valued at $20,000.
Following are the financial statements for the two companies for the year ending December 31,2018. Credit balances are indicated by (parentheses).
Complete the trial balance of A Company (calculate income of sub and investment in sub) by using the three different investing accounting methods;
Equity, Intial Value, and Partial Equity (use individual tabs following problem)
Then, continue by preparing a consolidated worksheet for year
ended Dec. 31,2018. Include your consolidation and elimination
entries in journal form with the exam.
A Company B Company
Revenues (4,85,000)(1,90,000)
COGS 1,60,00070,000
Depreciation Exp 1,30,00052,000
-
Net Income (68,000)
R/E,1/1(6,09,000)(40,000)
Net income (above)(68,000)
Dividends paid 1,75,50040,000
R/E,12/31(68,000)
Cash 2,68,00017,000
Trademark 4,27,50058,000
Buildings & Eqp (net)7,13,0001,61,000
Total Assets 2,36,000
Liabilities (1,90,000)(1,03,000)
Common Stock (6,00,000)(60,000)
APIC (90,000)(5,000)
R/E (above)(68,000)
Total Liabilities & Equity (2,36,000)
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