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Tyler Company acquired all of Jasmine Company's outstanding stock on January 1, 2016, for $262, 500 in cash. Jasmine had a book value of only
Tyler Company acquired all of Jasmine Company's outstanding stock on January 1, 2016, for $262, 500 in cash. Jasmine had a book value of only $189, 700 on that date. However, equipment (having an eight-year remaining life) was undervalued by $72, 800 on Jasmine's financial records. A building with a 20-year remaining life was overvalued by $12, 800. Subsequent to the acquisition, Jasmine reported the following: In accounting for this investment, Tyler has used the equity method. Selected accounts taken from the financial records of these two companies as of December 31, 2018, follow: Determine the following account balances as of December 31, 2018: a. Investment in Jasmine Company b. Equity in Subsidiary Earnings c. Consolidated Net Income d. Consolidated Equipment (net) e. Consolidated Buildings (net) f. Consolidated Goodwill (net) $10,000 g. Consolidated Common Stock h. Consolidated Retained Earnings, 12/31/18
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