Business, 27.12.2020 16:00 juliaduenkelsbu

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 $427,000 and $165,000, respectively, common stock outstanding of $85,000, and retained earnings of $177,000. The book values and fair values of Scrubs assets and liabilities were identical except for land, which had increased in value by $25,000, and inventories, which had decreased by $7,000. Required:
a. Prepare the consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $287,000.
b. Prepare the consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Mason acquired its ownership of Best for $262,000.

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

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