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I have posted this question 4 times, please help 1. On Jan 1, 2017 Parent BUYS an 70% interest in Sub for $630,000. On that
I have posted this question 4 times, please help
1. On Jan 1, 2017 Parent BUYS an 70% interest in Sub for $630,000. On that date the Stockholder's Equity of the SUB was as follows: Common Stock $50,000 Paid in Capital $290,000 Retained Earnings $200,000 The Book Values of the SUB had the following appraisal value differences: Inventory is undervalued by $20,000 (Assume FIFO Method) Building is overvalued by $225,000 (8 year remaining useful life) Bonds Payable Overvalued by 10,000 (4 year remaining life) Trial Balance 12/31/20 Parent SUB Cash $50,000 $75,000 Inventory $290,000 $540,000 Investment in Sub $630,000 -0- Building $772,000 $450,000 Accum Dep ($120,000) (S105,000) Goodwill SO SO Bond Payable ($50,000) (100,000) Pre/Disc $10,000 so Common Stock ($310,000) ($50,000) PIC ($425,000) (S290,000) R/E-S ($465,000) R/E-P ($715,000) Sales revenue ($925,000) ($600,000) COGS $586.000 $425,000 Operating Expenses $150,000 $65,000 Depreciation Expense $10,000 6,500 Interest Expense 15,000 8,500 Dividend Income (S28,000) Dividends 60,000 $40,000 NCI Prepare the Determination & Distribution of Excess Schedule $0 SOStep by Step Solution
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