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Please help and explain how got answer. thanks. Parent Company acquired 90% of Son Incorporate on January 31, 202 in exchange for cash. The book
Please help and explain how got answer. thanks.
Parent Company acquired 90% of Son Incorporate on January 31, 202 in exchange for cash. The book value of Son's individual asset and liabilities approximated their acquisition-date fair values. On the date of acquisition, Son reported the following: During the year Son Incorporate reported $310,000 in net income and declared $15,000 in dividends. Parent Company reported $520,000 in net income and declared $25,000 in dividends. Parent accounts for their investment using the equity method. Required: 1) What journal entry will Parent make on the date of acquisition to record the Investment in Son Incorporate? entry Parent would use in the consolidation worksheet? 3) What is Parent's balance in "Investment in Son Incorporate" prior to consolidation on December 31, 202? 4) What is the basic consolidation entry Parent would use in the consolidation worksheet on December 31,202Step by Step Solution
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