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kindly slove and show the steps and how we get the numbers. Thank you Peer Corporation paid $64,000 to acquire 80% of Sizee Corporation's outstanding
kindly slove and show the steps and how we get the numbers.
Peer Corporation paid $64,000 to acquire 80% of Sizee Corporation's outstanding voting common stock at book value on May 1, 2020. The stockholders' equity of Sizee on January 1, 2020 consisted of $40,000 Capital Stock and $20,000 Retained Earnings. Sizee's total dividends for 2020 were $6,000, paid equally on April 1 and October 1. Sizee's net income was earned uniformly throughout 2020 . In 2020 , pre-acquisition sales were $10,000 and preacquisition expenses were cost of sales for $5,000. (There were no other pre-acquisition expenses in 2020.) During 2020, Peer made sales of $20,000 to Sizee at a gross profit of $3,000. One-half of this merchandise was inventoried by Sizee at year-end. Peer sold equipment with a ten-year remaining useful life to Sizee at a $2,000 gain on December 31, 2020. The straight-line depreciation method is used by both companies. The equipment has no salvage value. Financial statements of Peer and Sizee Corporations for 2020 appear in the first two columns of the partially completed consolidation working papers. Required: - Compute with steps all the missing information - Complete the consolidating working papers for Peer Corporation and Subsidiary for the year ending December 31, 2020 Thank you
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