ACC440_TEAM_WEEK4 - For consolidation taking place Assets...

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Fineline Pencil Company purchased 100 percent of Smudge Eraser Corporation’s stock on January 2 20X3, for $150,000 cash. Summarized balance sheet data for the companies on December 31, 20X2, as follows: Book ValueFair Value Book ValueFair Value Cash $200,000 $200,000 $50,000 $50,000 Other Assets $400,000 $650,000 $120,000 $180,000 Total Debits $600,000 $170,000 Current Liabilities $100,000 $100,000 $80,000 $80,000 Common Stock $300,000 $50,000 Retained Earnings $200,000 $40,000 Total Credits $600,000 $170,000 Fineline Pencil Co Consolidated Balanc
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Unformatted text preview: For consolidation taking place Assets Cash Other Assets Total Assets Liabilites and Equities Current Liabilities Common Stock Retained Earnings Total Liabilites and Equities Current Liablities: $100,000 + $80,000 = $180,000 Common Stock: $300,000 + $50,000 - $50,000 = $300,000 Retained Earnings: $200,000 + $40,000 - $40,000 = $200,000 Fineline Pencil Company Smudge Eraser Corporation , , are ompany ce Sheet 2nd, January 20x3 $100,000 $580,000 $680,000 $180,000 $300,000 $200,000 $680,000...
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ACC440_TEAM_WEEK4 - For consolidation taking place Assets...

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