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Business, 22.02.2020 04:34 GingerSnaps

Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date of acquisition, Scrub Company reported assets and liabilities with book values of $429,000 and $182,000, respectively, common stock outstanding of $86,000, and retained earnings of $161,000. The book values and fair values of Scrubs assets and liabilities were identical except for land, which had increased in value by $19,000, and inventories, which had decreased by $5,000. Required: a. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $266,000.

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Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date...
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