On December 31, 20X6, Print Corporation and Size Company entered into a business combination in which Print acquired all of Sizes common stock for $957,000. At the date of combination, Size had common stock outstanding with a par value of $106,000, additional paid in capital of $414,000, and retained earnings of $185,000. The fair values and book values of all Sizes assets and liabilities were equal at the date of combination, except for the following:

The buildings had a remaining life of 16 years, and the equipment was expected to last another 6 years. In accounting for the business combination, Print decided to use push-down accounting on Sizes books.

During 20X7, Size earned net income of $97,000 and paid a dividend of $70,000. All of the inventory on hand at the end of 20X6 was sold during 20X7. During 20X8, Size earned net income of $99,000 and paid a dividend of $70,000. Required: a. Record the acquisition of Size's stock on Print's books on December 31, 20X6.

• Record the initial investment in Size Co.

b. Record any entries that would be made on December 31, 20X6, on Sizes books related to the business combination if push-down accounting is employed.

• Record the evaluation of the assets of Size Co.

c. Present all consolidating entries that would appear in the worksheet to prepare a consolidated balance sheet immediately after the combination.

• Record the basic consolidation entry.

d. Present all entries that Print would record during 20X7 related to its investment in Size if Print uses the equity-method of accounting for its investment.

• Record the dividend received from Size Co.
• Record the equity method income/loss.

e. Present all consolidating entries that would appear in the worksheet to prepare a full set of consolidated financial statements for the year 20X7.

• Record the basic consolidation entry.

f. Present all consolidating entries that would appear in the worksheet to prepare a full set of consolidated financial statements for the year 20X8.

• Record the basic consolidation entry.

Book Value Fair Value Inventory 59,000 64,000 168,000 501,000 573,000 Land Buildings Equipment 80,000 414,000 501,000