Prepare a consolidation worksheet as of december 31

Assignment Help Financial Accounting

Reference no: EM131810000

The following are preliminary financial statements for Black Co. and Blue Co. for the year ending December 31, 2013 prior to Black's acquisition of Blue.

On December 31, 2013 (subsequent to the preceding statements), Black exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Blue.

Black's stock on that date has a fair value of $60 per share. Black was willing to issue 10,000 shares of stock because Blue's land was appraised at $204,000. Black also paid $14,000 to several attorneys and accountants who assisted in creating this combination.

Required:

Assuming that these two companies retained their separate legal identities, prepare a consolidation worksheet as of December 31, 2013 after the acquisition transaction is completed.

Reference no: EM131810000

Questions Cloud

What is the minimum attractive rate of return : If the budget is $100,000, which of the projects shown below should be done? What is the minimum attractive rate of return?

Discuss how much income tax will ussub owe : Assuming a 34 percent US corporate income tax rate, how much income tax will USSub owe

What if the ten people are arranged at random in a circle : If Ted and Jim are among 10 people arranged randomly in a line, what is the chance that they stand next to each other?

What is the marr : If all of the following projects have a life of 10 years and the budget is $100,000, which should be done with the limited budget? What is the MARR?

Prepare a consolidation worksheet as of december 31 : Prepare a consolidation worksheet as of December 31, 2013 after the acquisition transaction is completed.

Determine the next capital budget for whitsitt : The final nine proposals are presented below. Determine the next capital budget for Whitsitt. What is the MARR?

Compute number of draws required to produce three red balls : Draws are made at random with replacement from a box of colored balls with the following compositions.

What is the marr for the division : Which project(s) should be selected if corporate headquarters has suggested a MARR of 15%? The following projects have been proposed.

Discuss the general journal entries required to record : Prepare ALL the general journal entries required to record the transactions relating to dividends for the year ended 30 November 2004

User Account

All Pages