QUESTION 1. In a cash transaction, Taylor Company purchased 90 percent of the outstanding stock of Schumacher Company for $763,200 on June 30, 20xx. Directly after the acquisition, sepa. rate balance sheets of the companies appeared as follows: Schumacher Company $ 48,000 240,000 520,000 Taylor Company Assets Cash $ 400,000 Accounts Receivable 650,000 Inventory 1,000,000 Investment in Schumacher Company 763,200 Plant and Equipment (net) 1,500,000 Other Assets 50,000 Total Assets $4,363,200 Liabilities and Stockholders' Equity Accounts Payable $ 800,000 Long-Term Debt 1.000.000 Common Stock. $5 par value 2,000,000 Retained Earnings 563.200 Total Liabilities and Stockholders' Equity 54.363.200 880,000 160,000 $1,848.000 $100,000 600,000 800,000 48.000 51.11-48.000 QUESTION 1. In a cash transaction, Taylor Company purchased 90 percent of the outstanding stock of Schumacher Company for $763,200 on June 30, 20xx. Directly after the acquisition, sepa. rate balance sheets of the companies appeared as follows: Schumacher Company $ 48,000 240,000 520,000 Taylor Company Assets Cash $ 400,000 Accounts Receivable 650,000 Inventory 1,000,000 Investment in Schumacher Company 763,200 Plant and Equipment (net) 1,500,000 Other Assets 50,000 Total Assets $4,363,200 Liabilities and Stockholders' Equity Accounts Payable $ 800,000 Long-Term Debt 1.000.000 Common Stock. $5 par value 2,000,000 Retained Earnings 563.200 Total Liabilities and Stockholders' Equity 54.363.200 880,000 160,000 $1,848.000 $100,000 600,000 800,000 48.000 51.11-48.000