Question
Exercise 4-15 (Static) Balance Sheet Worksheet with Differential LO 4-5 Plump Corporation acquired 100 percent of Slim Corporation's common stock on December 31, 20X2, for
Exercise 4-15 (Static) Balance Sheet Worksheet with Differential LO 4-5\ Plump Corporation acquired 100 percent of Slim Corporation's common stock on December 31, 20X2, for $189,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:\ \ Item Plump Corporation Slim Corporation\ Cash $ 26,000 $ 18,000\ Accounts Receivable 87,000 37,000\ Inventory 110,000 60,000\ Buildings and Equipment (net) 220,000 150,000\ Investment in Slim Corporation 189,000 \ Total Assets $ 632,000 $ 265,000\ Accounts Payable $ 92,000 $ 35,000\ Notes Payable 150,000 80,000\ Common Stock 100,000 60,000\ Retained Earnings 290,000 90,000\ Total Liabilities and Stockholders Equity $ 632,000 $ 265,000\ At the date of the business combination, Slim's net assets and liabilities approximated fair value except for inventory, which had a fair value of $84,000, and buildings and equipment (net), which had a fair value of $165,000.\ \ Required:\ Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination.\ \ Prepare a consolidation balance sheet worksheet.
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