Question
On 1/1/2014 the balance sheets of TRUMP and CARSON Companies were as follows: TRUMP CARSON Cash $1,000,000 $5,000,000 a/r $2,000,000 $7,000,000 land $1,000,000 $3,000,000 equipment
On 1/1/2014 the balance sheets of TRUMP and CARSON Companies were as follows:
TRUMP CARSON
Cash $1,000,000 $5,000,000
a/r $2,000,000 $7,000,000
land $1,000,000 $3,000,000
equipment $2,000,000 $9,000,000
a/d equip $1,000,000 $1,000,000
total assets $5,000,000 $23,000,000
a/p $1,000,000 $2,000,000
c/s $3,000,000 $12,000,000
r/e $1,000,000 $9,000,000
On 1/2/2014 CARSON Purchased 75% of TRUMP company for $4,000,000. At this time TRUMPS equipment had a fair market value of $1,100,000.
Required: 1) prepare the journal entry CARSON makes on 1/2/2014
2) prepare the journal entry TRUMP makes on 1/2/2014
3) prepare the worksheet entry on 1/2/2014
4) prepare the consolidated balance sheet on 1/2/2014
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