Prepare the consolidated balance sheet

Reference no: EM131792198

Question: The following are the balance sheets for Plate and Salad immediately prior to Plate's September 1, 2014, acquisition of Salad:

Consider the following cases:

Case 1 Plate buys 100% of Salad's common stock for $180,000 cash. The fair value of Salad's assets and liabilities equal their book value.

Case 2 Plate buys 100% of Salad's common stock for $210,000 cash. The fair value of Salad's land is $20,000 and of its buildings and equipment is $110,000. All other fair values equal book values.

Required: 1. Prepare the September 1, 2014, journal entry on Plate's books to record the acquisition of Salad.

2. Prepare the elimination entries needed to prepare a consolidated balance sheet immediately after the acquisition.

3. Prepare the consolidated balance sheet immediately after the acquisition.

Reference no: EM131792198

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