Question
On January 1, 2021, Paige Corporation purchased 100% of the outstanding stock of HomePage Company for $250,000 cash. The balances listed on the Worksheet are
On January 1, 2021, Paige Corporation purchased 100% of the outstanding stock of HomePage Company for
$250,000 cash. The balances listed on the Worksheet are the balances immediately after the purchase.
The fair market value of HomePage assets and liabilities on January 1, 2021 are as follows:
Current Assets $40,000
Land $50,000
Buildings $85,000
Equipment $50,000
Current Liabilities $(60,000)
| Step 2 - Prepare the Consolidation Entries Required at Acquisition | |||
| Consolidation Entries: | Debit | Credit | |
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Managerial Accounting An Introduction to Concepts Methods and Uses
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
10th Edition
1111822239, 324639767, 9781111822231, 978-0324639766
