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I would like to double check the work I completed. The question is attached. Request feedback. Thanks Mortar Corporation acquired 80 percent ownership of Granite
I would like to double check the work I completed. The question is attached. Request feedback. Thanks
Mortar Corporation acquired 80 percent ownership of Granite Company on January 1, 20X7, for $173,000. At that date, the fair value of the noncontrolling interest was $43,250. The trail balances for the two companies on December 31, 20X7, included the following amounts: Item Cash Accounts Receivable Inventory Land Building & Equipment Investment in Granite Company Stock Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Mortgage Payable Common Stock Retained Earnings Sales Income from Subsidiary Mortar Corporation Debit Credits $38,000 $50,000 $240,000 $80,000 $500,000 $202,000 $500,000 $25,000 $75,000 $50,000 $155,000 $70,000 $200,000 $300,000 $290,000 $700,000 $45,000 $1,760,000 $1,760,000 Granite Company Debit Credits $25,000 $55,000 $100,000 $20,000 $150,000 $250,000 $15,000 $75,000 $20,000 $75,000 $35,000 $50,000 $50,000 $100,000 $400,000 $710,000 $710,000 Information a) On January 1, 20X7, Granite reported net assets with a book value of $150,000 and a fairvalue of $191,000. b) Granite's depreciable assets had an estimated economic life of 11 years on the date of combination. The difference between fair value and book valueof Granite's net assets is related entirelyto buildings and eqipment. c) Mortar used the equity method of accounting for its investment in Granite. d) Detailed analysis of receivables and payablesshowed that Granite owed Mortar $16,000 on December 31, 20X7. Assignment 1. Give all journal entries recorded by Mortar with regards to its investment in Granite during 20X7. 2. Give all eliminating entries needed to prepare a full set of consolidated financial statementsfor 20X7 3. Prepare a three part consolidated workpaper as of December 31, 20X7Step by Step Solution
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