Question
For those interested let's change up the problem a little and look at the initial value method. Accounts Payable $50, Accounts Receivable $40, Additional Paid
For those interested let's change up the problem a little and look at the initial value method.
Accounts Payable $50, Accounts Receivable $40, Additional Paid in Capital $50, Building (4 year remaining life, net) $120, Cash $60, Common Stock $250, Equipment (5 year remaining life, net) $200, Inventory $90, Land $80, Long-term liabilities (mature end of Year 4) $150, Retained earnings (Beg Year 1) $100, and Supplies $10
During year 1, Company B reported net income of $80 and paid dividends of $10. During Year 2, reported net income of $110, and paid dividends of $30.
Company A again acquired all common stock of Company B for $500 cash. Fair value of Equipment $220, long-term Liabilities $120 at the date of acquisition. Company A uses the initial value method, what are the consolidation worksheet entries for the end of the first year, and the end of the second year?
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