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Problem Company owns 90 percent of Solution Dairy's stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts:
Problem Company owns 90 percent of Solution Dairy's stock. The balance sheets of the two companies immediately after the Solution acquisition showed the following amounts: The fair value of the noncontrolling interest at the date of acquisition was determined to be $29,700. The full amount of the increase over book value is assigned to land held by Solution. At the date of acquisition, Solution owed Problem $10,000 plus $900 accrued interest. Solution had recorded the accrued interest, but Problem had not. Requlred: Prepare a consolidated balance sheet worksheet. (Values In the flrst two columns (the "parent" and "subsidlary" belances) that are to be deducted should be Indlceted with o minus slgn, while all values ln the "Consolldetion Entrles" columns should be entered as positlve values. For accounts where multlple adjusting entrles are requlred, comblne all deblt entrles lnto one amount and enter thls amount In the deblt column of the worksheet. Slmllerly, comblne all credit entrles Into one amount and enter thls amount In the credlt column of the worksheet.)
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