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! ! ! ! I just need help finding retained earnings. Determining ending consolidated balances in the second year following the acquisition - Cost method
I just need help finding retained earnings.
Determining ending consolidated balances in the second year following the acquisitionCost method
Assume a parent company acquired a subsidiary on January for $ The purchase price was $ in excess of the subsidiary's $ book value of Stockholders' Equity on the acquisition date. Of this excess purchase price, $ was assigned to Property, plant and equipment with a remaining economic useful life of years, and $ was assigned to Goodwill. On the acquisition date, the subsidiary reported retained earnings equal to $ The parent uses the cost method of preconsolidation Equity investment bookkeeping. The financial statements of the parent and its subsidiary for the year ended December are as follows:
tableParent,Subsidiary,,Parent,SubsidiaryIncome statement,,,Balance sheet,,Sales$$Assets,,Cost of goods sold,Cash,$$
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