Question
On January 1, 2017, Aiello Company purchased 100% of the common stock Uline Industries for $450,000. On that date, Uline had common stock of $90,000
On January 1, 2017, Aiello Company purchased 100% of the common stock Uline Industries for $450,000. On that date, Uline had common stock of $90,000 and retained earnings of $280,000. Equipment and land were each undervalued by $25,000 on Ulines books. There was a $10,000 overvaluation of Bonds Payable, as well a $20,000 undervaluation of inventory. The combined consolidation entries necessary for a date of acquisition balance sheet include all of the following except:
Select one:
A. Common Stock debit, $90,000
B. Retained Earnings credit, $280,000
C. Equity Investment credit, $450,000
D. No debits or credits to goodwill
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