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Please solve f. and i. Determining ending consolidated balances in the second year following the acquisition-Cost method Assume a parent company acquired a subsidiary on
Please solve f. and i.
Determining ending consolidated balances in the second year following the acquisition-Cost method Assume a parent company acquired a subsidiary on January 1,2015 , for $2,136,000. The purchase price was $1,016,200 in excess of the subsidiary's $1,119,800 book value of Stockholders' Equity on the acquisition date. Of this excess purchase price, $552,000 was assigned to Property, plant and equipment with a remaining economic useful life of 10 years, and $464,200 was assigned to Goodwill. On the acquisition date, the subsidiary reported retained earnings equal to $847,550. The parent uses the cost method of preconsolidation Equity investment bookkeeping. The financial statements of the parent and its subsidiary for the year ended December 31,2016 , are as follows: At what amount will the following accounts appear on the consolidated financial statements? Do not use negative signs with any of your answersStep by Step Solution
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