Reference no: EM131752676

Problem - Alpha acquired 100% of Beta's common stock for $400,000. On this date the Fair Market Value of some of Beta's assets and liabilities were:

Land                                      $180,000

Building                                $50,000

Bonds Payable                  $75,000

Prepare a consolidation workpaper at the date of acquisition based upon the following book values at the date:

                                                                                                                Elimination Entries

                                                Alpha                    Beta                                       Debit     Credit    Consolidated

Current Assets                  800,000                    340,000                                             

Land                                      200,000                    150,000                                             

Building                                600,000                       90,000                                            

Investment in Beta         400,000                                  -                                            

                                                -                               -                                            

                                                -                               -                                            

                                                -                               -                                            

Total Debits                        2,000,000                580,000

Current Liabilities             600,000                    200,000                                             

Bonds Payable                  200,000                       80,000                                            

Accumulated Depreciation 250,000                60,000                                            

Common Stock                 150,000                    100,000                                             

Paid in Capital                    250,000                      -                                            

Retained Earnings            550,000                    140,000                                             

Total Credits                       2,000,000                580,000