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Please help me solve this question: Required A Required B Determine the following account balances: Note: Input all amounts as positive values. table [
Please help me solve this question: Required
Required B
Determine the following account balances:
Note: Input all amounts as positive values.
tableAccountsAmountsGain on bargain purchase,, Prepare a December consolidated worksheet for Brooks and Chandler.
Note: For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this
amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the
credit column of the worksheet. Input all amounts as positive values.
Show less AOn January Brooks Corporation exchanged $ fairvalue consideration for all of the outstanding voting stock of Chandler, Incorporated. At the acquisition date, Chandler had a book value equal to $ Chandler's individual assets and liabilities had fair values equal to their respective book values except for the patented technology account, which was undervalued by $ with an estimated remaining life of six years. The Chandler acquisition was Brooks's only business combination for the year.
In case expected synergies did not materialize, Brooks Corporation wished to prepare for a potential future spinoff of Chandler, Incorporated. Therefore, Brooks had Chandler maintain its separate incorporation and independent accounting information system as elements of continuing value.
On December each company submitted the following financial statements for consolidation. Dividends were declared and paid in the same period.
tableAccountstableBrooksCorporationtableChandlerIncorporatedIncome StatementRevenues$$Cost of goods sold,Gain on bargain purchase,Depreciation and amortization,Equity earnings from Chandler,Net income,$$Statement of Retained EarningsRetained earnings, $$Net income aboveDividends declared,Retained earnings, $$Balance SheetCurrent assets,$$Investment in Chandler,TrademarksPatented technology,EquipmentTotal assets,$$Liabilities$$Common stock,Retained earnings, Total liabilities and equity,$$
Note: Parentheses indicate a credit balance.
Required:
a Determine the following account balances:
Gain on bargain purchase.
Earnings from Chandler.
Investment in Chandler.
b Prepare a December consolidated worksheet for Brooks and Chandler.
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