Reference no: EM133102108

Question - 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 $439,000 and $166,000, respectively, common stock outstanding of $80,000, and retained earnings of $193,000. The book values and fair values of Scrub's assets and liabilities were Identical except for land, which had Increased In value by $16,000, and Inventories, which had decreased by $9,000.

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 $298,000.

b. 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 $269,000.