Subsidiary Acquired for Cash Fineline Pencil Company acquired 80 percent of Smudge Eraser Corporation's stock on January 2, 20X3, for $72,000 cash. Summarized balance sheet data for the companies on...


Subsidiary Acquired for Cash<br>Fineline Pencil Company acquired 80 percent of Smudge Eraser Corporation's stock on January 2,<br>20X3, for $72,000 cash. Summarized balance sheet data for the companies on December 31,<br>20X2, are as follows:<br>Fineline Pencil<br>Company<br>Smudge Eraser<br>Corporation<br>Book Value<br>Cash<br>Other Assets<br>Total Debits<br>$200,000<br>400,000<br>$600,000<br>Fair Value<br>$200,000<br>400,000<br>Book Value<br>$50,000<br>120,000<br>$170,000<br>Fair Value<br>$50,000<br>120,000<br>Current Liabilities<br>Common Stock<br>Retained Earnings<br>Total Credits<br>$100,000<br>300,000<br>200,000<br>$600,000<br>100,000<br>$80,000<br>50,000<br>40,000<br>$170,000<br>80,000<br>Required<br>Prepare a consolidated balance sheet immediately following the acquisition.<br>

Extracted text: Subsidiary Acquired for Cash Fineline Pencil Company acquired 80 percent of Smudge Eraser Corporation's stock on January 2, 20X3, for $72,000 cash. Summarized balance sheet data for the companies on December 31, 20X2, are as follows: Fineline Pencil Company Smudge Eraser Corporation Book Value Cash Other Assets Total Debits $200,000 400,000 $600,000 Fair Value $200,000 400,000 Book Value $50,000 120,000 $170,000 Fair Value $50,000 120,000 Current Liabilities Common Stock Retained Earnings Total Credits $100,000 300,000 200,000 $600,000 100,000 $80,000 50,000 40,000 $170,000 80,000 Required Prepare a consolidated balance sheet immediately following the acquisition.

Jun 01, 2022
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