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Please answer first question and then do the journal entries below for next question. thx Player Corporation purchased 100 percent of Scout Company's common stock
Please answer first question and then do the journal entries below for next question. thx
Player Corporation purchased 100 percent of Scout Company's common stock on January 1,20X5, and paid $32,000 above book value. The full amount of the additional payment was attributed to amortizable assets with a life of four years remaining at January 1 , 20X5. During 205 and 20X6, Scout reported net income of $50,000 and $6,000 and paid dividends of $13,000 and $10,000, respectively. Player uses the equity method in accounting for its investment in Scout and reported a balance in its investment account of $174,000 on December 31,206. Required: Compute the amount paid by Player to purchase Scout shares. On June 10, 20x8. Playoff Corporation acquired 100 percent of Series Company's common stock. Summarized balance sheet data for the two companies immediately after the stock acquisition are as follows: Required: a. Prepare the consolidating entries required to prepare a consolidated balance sheet immediately after the acquisition of Series Company shares. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the basic consolidation entry. Note: Enter debits before credits. Journal entry worksheet Record the excess value (differential) reclassification entry. Note: Enter debits before credits Step by Step Solution
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