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On December 31 Year 1 P Company purchased BOSS of the outstanding shares of 5 Company for $7 950 for cash to of The statements of financial position...

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taken from the book advanced accounting







18094233-243924.jpeg

18094233-243924.jpeg

On December 31 Year 1 P Company purchased BOSS of the outstanding shares of 5 Company for $7 950
for
cash
to of
The statements of financial position of the two companies immediately after the acquisition transaction
appear below
company
5 Company
Carrying
Carrying
Fai
Amoun
Amoun
Value
Plant and equipment ( net )
9600$ 8300 7000
Investment in S Company
7:900
Inventory
6 6 60
5, 300
5,500
Accounts receivable
6 , 150
3, 300
2 0
Cash
4 500
2550
2.950
$ 34 810
$19 450
Ordinary shares
12000$ 4500
Retained earnings
15 410
5 950
Long-term liabilities
4.500
3 500
3, 500
Other current liabilities
1500
3 300
3, 300
Accounts payable
1 400
29010
2, 200
34 810
19 450
Required
) Prepare a consolidated statement of financial position at the date of acquisition under each of the
following
if Parent company extension theory
i1) Entity theory

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