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I need help with part B On January 1 , 2 0 2 0 , Corgan Company acquired 8 0 percent of the outstanding voting
I need help with part B On January Corgan Company acquired percent of the outstanding voting stock of Smashing, Inc., for a total of $ in cash and other consideration. At the acquisition date, Smashing had common stock of $ retained earnings of $ and a noncontrolling interest fair value of $ Corgan attributed the excess of fair value over Smashing's book value to various covenants with a year remaining life. Corgan uses the equity method to account for its investment in Smashing. During the next two years, Smashing reported the following: Corgan sells inventory to Smashing using a percent markup on cost At the end of and percent of the current year purchases remain in Smashing's inventory. o Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December b Prepare the worksheet adjustments for the December consolidation of Corgan and Smashing.
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