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Question 2 (60 points) On January 1, 2020, Party Corporation acquired 70 percent of Selfie Company's common stock for $84,000 cash. The fair value of

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Question 2 (60 points) On January 1, 2020, Party Corporation acquired 70 percent of Selfie Company's common stock for $84,000 cash. The fair value of the noncontrolling interest at that date was determined to be $36,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Party Co. Selfie Co. Cash $26,000 $15,000 Accounts Receivable 30,000 22,500 Inventory 32,000 18,000 Land 63,000 44,500 Buildings and Equipment 175,000 85,000 Less: Accumulated Depreciation 40,000 -30,000 Investment in Selfie Corp. 84,000 Total Assets $450,000 $155,000 Accounts Payable $90,000 $35,000 Bonds Payable 120,000 25,000 Common Stock 150,000 40,000 Retained Earnings 90,000 55,000 Total Liabilities and Equity $450,000 $155,000 At the date of the business combination, the book values of Selfie's net assets and liabilities approximated fair value except for inventory, which had a fair value of $21,500, and building and equipment, which had a fair value of $55,000. Required: A) Prepare the equity method entries on Party's books for the acquisition of Selfie on January 1, 2020. (10 points) B) Give the basic consolidation entry. (15 points) Give excess value (differential) reclassification entries at the date of acquisition. (10 points) D) Give accumulated depreciation consolidation entry (10 points) E) What is the balance of Inventory in the consolidated balance sheet as of January 1, 2020. (5 points) a) $18,000 b) S21,500 c) $50,000 d) $53,500 e) None What is the balance of common stock in the consolidated balance sheet os of January 1, 2020./5 points) b) $40,000 b) 590,000 c) $150,000 d) $190,000 e) None G) What is the amount of total ossets in the consolidated balance sheet as of lanuary 1, 2020. (s points) c) $594,000 b) $546,000 $510,000 d) 5605.000 e) None

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