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Pencil Company acquired 70 percent of Stylus Corporation's stock on January 2, 20X3, for $81,200 cash. Summarized balance sheet data for the companies on December
Pencil Company acquired 70 percent of Stylus Corporation's stock on January 2, 20X3, for $81,200 cash. Summarized balance sheet data for the companies on December 31, 20X2, follow: Cash Other Assets Total Debits Current Liabilities Common Stock Retained Earnings Total Credits Pencil Company Book Value Fair Value $212,000 $212,000 414,000 414,000 $626,000 $ 85,000 85,000 284,000 257,000 $626, 000 Stylus Corporation Book Value Fair Value $ 50,000 $ 50,000 131,000 131,000 $181,000 $ 65,000 65,000 50,000 66,000 $181,000 Required: Prepare a consolidated balance sheet immediately following the acquisition. PENCIL COMPANY AND SUBSIDIARY Consolidated Balance Sheet January 2, 20X3 Assets Total Assets Liabilities and Stockholders' Equity Total Liabilities and Stockholders' Equity
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