Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consolidation Eliminating Entries, Date of Acquisition and Two Years Later Plaza Hotels acquired a 90 percent interest in Stardust of the 10 percent noncontroi acquisition

image text in transcribed

Consolidation Eliminating Entries, Date of Acquisition and Two Years Later Plaza Hotels acquired a 90 percent interest in Stardust of the 10 percent noncontroi acquisition reported net assets were carried at amounts approximating fair value, except fo LO 1, 2 Casinos on January 1, 2020 for S51,100,000. The fair value ing interest at the date of acquisition was $2,900.000. Stardust's date-of r these items: Plant and equipment, 10-year life, straight-line, is overvalued by S6,000,000 Previously unrecorded limited-life identifiable intangibles, 4-year life, straight-line, were val $8,000,000 Stardust's equity accounts at the date of acquisition were as follows: Capital stock Retained earnings Accumulatedotheeensive income. Total. . 300,000 1,650,000 50.000 . $2,000,000 Stardust reports net income of $4,000,000 and other comprchensive loss of $10,000 for 2021. Stardus reported net income of S2,800,000 and other comprehensive income of $25,000 in 2020. Stardust did not declarc any dividends in either ycar. Goodwill from this acquisition is impaircd by $200,000 during 2021 but was not impaired in 2020 Prepare the consolidation climinating entrics (E) and (R) at the date of acquisition

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Guide Government Auditing Standards And Single Audits

Authors: AICPA

1st Edition

1945498447, 978-1945498442

More Books

Students also viewed these Accounting questions