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Dividends are declared and paid in the same period. The December 3 1 , 2 0 2 4 , separate financial statements for each company
Dividends are declared and paid in the same period. The December separate financial statements for each company follow.
Parentheses indicate credit balances.
Required:
a Determine the fair value in excess of book value for Palo Verde's acquisition date investment in Silverstone.
b Determine Palo Verde's December Investment in Silverstone balance.
c Prepare a worksheet to determine the balances for Palo Verde's December consolidated financial statements. Prepare a worksheet to determine the balances for Palo Verde's December consolidated financial statements.
Note: For accounts where multiple consolidation entries are required,combine all debit entries into one amount and enter this amount in the debit
column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. InputOn January Palo Verde Corporation acquired percent of the voting stock of Silverstone Corporation in exchange for
$ in cash and securities On the acquisition date, Silverstone had the following balance sheet:
At the acquisition date, the book values of Silverstone's assets and liabilities were generally equivalent to their fair values except for
the following assets:
During the next two years, Silverstone has the following income and dividends in its own separately prepared financial reports to its
parent.
Dividends are declared and paid in the same period. The December separate financial statements for each company follow.
Parentheses indicate credit balances.
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