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On January 1, 2010, Pete Company purchased 90 percentage of the outstanding common stock of Sue Company for dollar 198,000. At the time, Sue's stockholder'
On January 1, 2010, Pete Company purchased 90 percentage of the outstanding common stock of Sue Company for dollar 198,000. At the time, Sue's stockholder' equity consisted of common stock dollar 20,000; other contributed capital, dollar 100,000; and retained earrings, dollar 55,000. Assuming that any difference between book value of equity and the value implied by the purchase price is attributable to land. On December 31, 2010, the two companies' trial balance were as follows
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