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On January 1, 20X4, Alum Corporation acquired Da Silva Company, a Brazilian subsidiary, by purchasing all its common stock at book value. Da Silva's trial
On January 1, 20X4, Alum Corporation acquired Da Silva Company, a Brazilian subsidiary, by purchasing all its common stock at book value. Da Silva's trial balances on January 1, 20X4, and December 31, 20X4, expressed in Brazilian reals (BRL), follow: January 1, 20X4 December 31, 20X4 Credit Credit Debit BRL 62,000 83,900 95,000 5,600 250,000 Debit BRL 57,700 82,000 95,000 2,400 350,000 BRL 67,500 BRL 100,000 42,000 30,000 Cash Accounts Receivable (net) Inventories Prepaid Insurance Plant & Equipment Accumulated Depreciation Intangible Assets Accounts Payable Income Taxes Payable Interest Payable Notes Payable Bonds Payable Common Stock Additional Paid-In Capital Retained Earnings Sales Cost of Goods Sold Insurance Expense Depreciation Expense Amortization Expense Operating Expense Dividends Paid 20,000 30,000 1,000 20,000 120,000 80,000 150,000 50,000 24,000 27,000 1,100 20,000 120,000 80,000 150,000 50,000 500,000 230,000 3,200 32,500 12,000 152,300 25,000 Total BRL 538,500 BRL 538,500 BRL 1,072,100 BRL 1,072,100
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