B-09.09 Problem - Consolidated Cash $ 450,000 $ 60,000...

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B-09.09 Packed Powder Corporation bought all of the stock of Snowfall Corporation from its existing shareholders on June 30, 20X4. Packed Powder paid Snowfall's shareholders a total of $2,000,000, which happened to be exactly equal to the recorded stockholders' equity of Snowfall. Further, the recorded values for each of the assets and liabilities of Snowfall were approximately equal to their estimated fair values. Following is a listing of the separate assets and liabilities of each company, immediately following the acquisition: Packed Powder Snowfall
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Unformatted text preview: Consolidated Cash $ 450,000 $ 60,000 Accounts Receivable 400,000 185,000 Inventory 1,250,000 125,000 Investment in Snowfall 2,000,000 - Land 850,000 380,000 Building and equipment (net) 1,300,000 1,700,000 - $ 6,250,000 $ 2,450,000 $ - Accounts Payable 760,000 150,000 Notes Payable 2,400,000 300,000 Common Stock 500,000 400,000 Retained Earnings 2,590,000 1,600,000 - $ 6,250,000 $ 2,450,000 $ - Complete the "Consolidated" column to show how these accounts would appear in the consolidated balance sheet for Packed Powder and its subsidiary....
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