Prepare the journal entry for consolidation under situations

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Reference no: EM132719705

Question - Rand Corp. acquired 100% of Spaulding Inc. on December 31, 2012. Spaulding was dissolved right afterwards. Please prepare the journal entry for consolidation under two situations.

Situation 1: Rand pays $200,000 cash to acquire all of the Spaulding's assets and liabilities. The fair value of Spaulding's Equipment is $4,000 higher than its book value. For the rest assets and liabilities, there is no difference between book value and fair value.

Situation 2: Rand pays $180,000 cash to acquire all of the Spaulding's assets and liabilities. The fair value of Spaulding's Equipment is $4,000 higher than its book value. For the rest assets and liabilities, there is no difference between book value and fair value.

Reference no: EM132719705

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