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Zoo Inc paid $268,000 to purchase 80% of the outstanding stock of Bird Corporation, on December 31, 2005. The following year-end information was available just
Zoo Inc paid $268,000 to purchase 80% of the outstanding stock of Bird Corporation, on December 31, 2005. The following year-end information was available just before the purchase: | ||||||
Zoo | Bird Book Value | Bird | ||||
Book Value | Fair | |||||
Value | ||||||
Cash | $ | 378,000 | $ | 40,000 | $ | 40,000 |
Accounts Receivable | 130,000 | 76,000 | 76,000 | |||
Inventory | 240,000 | 50,000 | 55,000 | |||
Land | 220,000 | 80,000 | 55,000 | |||
Plant and equipment-net | 660,000 | 200,000 | 215,000 | |||
$ | 1,628,000 | $ | 446,000 | $ | ||
Accounts Payable | $ | 440,000 | $ | 11,000 | $ | 11,000 |
Bonds Payable | 468,000 | 100,000 | 95,000 | |||
Capital stock, $10 par value | 200,000 | |||||
Capital stock, $15 par value | 225,000 | |||||
Additional paid-in capital | 200,000 | 80,000 | ||||
Retained earnings | 320,000 | 30,000 | ||||
$ | 1,628,000 | $ | 446,000 | |||
Required: | ||||||
1 | Prepare Zoos consolidated balance sheet on December 31, 2005. |
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