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The balance sheets for Pool Company and Swim Company as of December 31, 2020 are shown below The fair values of Swim Company's assets and
The balance sheets for Pool Company and Swim Company as of December 31, 2020 are shown below The fair values of Swim Company's assets and liabilites are equal to their book values. Required: Prepare a consolidated balance sheet as of January 1, 2021 under each of the following assumptions. A. On January 1, 2021, Pool purchased 90% of the outstanding common stock of Swim Company for $594,000. B. On January 1, 2021, Pool exchanged 11,880 of its $20 par value common shares with a fair value of $50 per share for 90% of the outstanding common shares of Sprague Company
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