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You were given the following information for the Unadjusted Income Statements for Parent Inc. and Sub Inc. for December 3 1 , 2 0 2
You were given the following information for the Unadjusted Income Statements for Parent Inc. and Sub Inc. for December Parent Inc. Sub Inc. Sales Revenue $ $ Cost of Goods Sold $ $ Depreciation Expense $ $ Net Income Before Tax $ $ You were advised that Parent acquired Sub on January On that date, the acquisition differential was $
Question:
Assume Parent owns of Sub. Also further assume the percentage breakdown of acquisition differential on the acquisition date was as follows: was allocated to inventory for which on the date of acquisition the fair value was greater than book value the remaining was attributable to Goodwill
Required: Calculate the adjusted Consolidated Net income before Tax. You do NOT need to prepare a complete income statement, but be sure you show how you reached solution number.
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