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Hi all dear please help me how to do? 29umge: E3-18 Subsidiary at Net Book Value Banner Corporation acquired 100 percent of Drawer Company's common
Hi all dear please help me how to do?
29umge: E3-18 Subsidiary at Net Book Value Banner Corporation acquired 100 percent of Drawer Company's common at underlying book value. At the acquisition date, the book value and fair value of all Drawer's assets and liabilities were equal. Banner use the equity method in accounting for the investment. Balance sheet information provided by the companies at December 31, 20x8, is as follow: Banner Drawer Corporation Company Cash 40,000 20.000 Account Receivable 120,000 70,000 Inventory 180,000 90,000 Fixed Assets (net) 350,000 240,000 Investment in Drawer Company Stock 170,000 Total Debit 860,000 420,000 Account Payable 65,000 30,000 Note Payable 350,000 220,000 Common Stock 150,000 90,000 Retained Earnings 295,000 80,000 Total Credit 860.000 420,000 Required Prepare a consolidated balance sheet for Banner at December 31, 20x8Step by Step Solution
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