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On January 1 2020. Pinnacle Corporation exchanged 53.415.000 cash for 100 percent of the outstanding voting stock of Strata Corporation. On the acquisition date. Strata

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On January 1 2020. Pinnacle Corporation exchanged 53.415.000 cash for 100 percent of the outstanding voting stock of Strata Corporation. On the acquisition date. Strata had the following balance sheet Cash Accounts receivable Inventory Building (net) Licensing Total assets 1 190,00 Accounts payable 345,000 Long-term debt 385,00 Camon stock 1,100,000 tandang 120.000 36,138,000 Total ties and guity 33.co 2.145.000 1.500.000 Pinnacie prepared the following fair value allocation 20.000 525.000 Fair value of strate consideratim troferred) Carrying out acquired Excess Fair value to building underved) to licensing agrements (overled to good definite life) 0.000 10. 114,000 At the acquisition date. Strata's buildings had a 10-year remaining life and its licensing agreements were due to expire in 5 years. On December 212021 Strata's accounts payable included an 586,200 currently owed to Pinnacle Serata Corporation continues its separate legal existence as a wholly owned subsidiary of Pinnacle with independent accounting records. Pinnacle employs the initial Value method in its internal accounting for its investment in Strata The separate financial statements for the two companies for the year ending December 31, 2021. follow Credit balances are indicated by parentheses The separate financial statements for the two companies for the year ending December 31, 2021. follow. Credit balances are indicated by parentheses Strat $ 7,307,000) .100,00 Cost of 2. Interest 233, Deprecate 13.00 Artiste 65. DIA tut 18,00) 3340,000) Rata 12 0,00 3.000.000 Bet 17.00 Dividere Note 11/11/ 5.151.7360 Cash 1 6.410.000 ventory 3. te strata 3,415.00 Nd (n) S.. 1,148.000 Lice.gr 111 100 Total 110,000,000 10,933.000 A pale (10.000 500 Longter C 1. . Healed caringa LAMAN 3.000 Totalt er ty , 3333,000) Prepare a worksheet to consolidate the financial information for these two companies Compute the following amounts that would appear on Pinnacles 2028 separate (nonconsolidates franca records Prades investment accounting was based on the equity method Subsidiary income Retained earnings 1121 Investment in Strana c. Whatefect does the parent's internal Investment accounting method have on considered financial statements

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