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Please help.Thank you Plumb Company created Stew Company as a wholly owned subsidiary by transferring assets and accounts payable to Stew in exchange for its
Please help.Thank you
Plumb Company created Stew Company as a wholly owned subsidiary by transferring assets and accounts payable to Stew in exchange for its common stock. Stew recorded the following entry when it received the assets and accounts payable: Required: a. What was Plumb's book value of the total assets (not net assets) transferred to Stew Company? b. What amount did Plumb report as its investment in Stew after the transfer? c. What number of shares of $10 par value stock did Stew issue to Plumb? d. What impact did the transfer of assets and accounts payable have on the amount reported by Plumb as total assetsStep by Step Solution
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