On January 1, Swiss Corporation acquires (100 %) of Arco Inc. for ($ 200,000) in cash. The

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On January 1, Swiss Corporation acquires $100 \%$ of Arco Inc. for $\$ 200,000$ in cash. The condensed balance sheets of the two corporations immediately following the acquisition are as follows:

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\section*{Instructions}
Prepare consolidated work sheet when cost equals book value.
(SO 6)
Prepare a work sheet for a consolidated balance sheet.

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Financial Accounting

ISBN: 9780471169208

2nd Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Question Posted: Jun 14, 2024 01:14 AM

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On January 1, Swiss Corporation acquires (100 %) of Arco Inc. for ($ 200,000) in cash. The

Question:

Current assets Investment in Arco Inc. common stock Plant and equipment (net) Current liabilities Common stock Retained earnings Swiss Corporation $ 60,000 200,000 300,000 Arco Inc. $ 40,000 210,000 $250,000 $560,000 $180,000 $ 50,000 225,000 75,000 155,000 125,000 $560,000 $250,000

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Financial Accounting

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