Pork Corporation acquired all the voting shares of Swine Enterprises on January 1, 20X4. Balance sheet...

Transcribed Image Text:

Pork Corporation acquired all the voting shares of Swine Enterprises on January 1, 20X4. Balance sheet amounts for the companies on the date of acquisition were as follows: Pork Corporation Swine Enterprises Cash & Receivables Inventory Land $ 44,000 $ 24,000 110,000 87,000 Buildings & Equipment 416,000 Investment in Swine Enterprises 304,000 Total Debits $961,000 Accumulated Depreciation Accounts Payable $172,000 43,000 44,000 97,000 235,000 $400,000 $ 58,000 12,000 Notes Payable 92,000 96,000 Common Stock 300,000 92,000 Retained Earnings Total Credits 354,000 $961,000 142,000 $400,000 Swine Enterprises' buildings and equipment were estimated to have a market value of $187,000 on January 1, 20X4. All other items appeared to have market values approximating current book values. Pork Corporation acquired all the voting shares of Swine Enterprises on January 1, 20X4. Balance sheet amounts for the companies on the date of acquisition were as follows: Pork Corporation Swine Enterprises Cash & Receivables Inventory Land $ 44,000 $ 24,000 110,000 87,000 Buildings & Equipment 416,000 Investment in Swine Enterprises 304,000 Total Debits $961,000 Accumulated Depreciation Accounts Payable $172,000 43,000 44,000 97,000 235,000 $400,000 $ 58,000 12,000 Notes Payable 92,000 96,000 Common Stock 300,000 92,000 Retained Earnings Total Credits 354,000 $961,000 142,000 $400,000 Swine Enterprises' buildings and equipment were estimated to have a market value of $187,000 on January 1, 20X4. All other items appeared to have market values approximating current book values.