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Q 1 ) P Corporation acquired 1 0 0 percent of S Company's outstanding common stock on January 1 , 2 0 2 2 ,

Q1) P Corporation acquired 100 percent of S Company's outstanding
common stock on January 1,2022, for $550,000 cash. S reported net assets
with a book value of $350,000 at that time. Some of S assets had fair values
that differed from book values as follows:
Any goodwill is considered to have an indefinite life with no impairment
charges during the year. Following are financial statements at the end of
the first year for these two companies prepared from their separately
maintained accounting systems.
Required:
a)prepare elimination entries at 3112?2022
b) Show how P computed the $210,000 income of S balance.
c) Using the preceding information, prepare a consolidation worksheet
for these two companies as of December 31,2022
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