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Pop Company acquired all of Soda Corporation's common shares on January 2, 20X3, for $789,000. At the date of combination, Soda's balance sheet appeared as

Pop Company acquired all of Soda Corporation's common shares on January 2, 20X3, for $789,000. At the date of combination, Soda's balance sheet appeared as follows:

Assets Amounts Liabilities Amounts
Cash & Receivables $34,000 Current Payables $25,000
Inventory $165,000 Note Payable $100,000
Land $60,000 Stockholders' Equity common stock $200,000
Building $250,000 Additional Capital $425,000
Equipment $320,000 Retained Earnings $79,000
Total $829,000

$829.00

The fair values of all of Soda's assets and liabilities were equal to their book values except for its fixed assets. Soda's land had a fair value of $75,000; the buildings, a fair value of $300,000; and the equipment, a fair value of $340,000. Pop Company decided to employ push-down accounting for the acquisition of Soda Corporation. Subsequent to the combination, Soda continued to operate as a separate company.

Part A: Record the acquisition of Soda's stock on Pop's books (Journal entry)

All I have is the Investment in Soda Corporation and Cash

Part B: Prepare any entries that would be made on Soda's books related to the business combination, assuming push-down accounting is used.

All I have is land, buildings and equipment

Part C: Prepare all consolidation entries that would appear in a consolidation worksheet for Pop Company and its subsidiary prepared immediately following the combination.

All I have is common stock-Soda Corporation and Retained earnings

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