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Question - On January 1, 20X9, Zigma Company acquired 80 percent of Standard Company's common shares at underlying book value (Purchase Price $80K). Zigma uses the equity method in accounting for its ownership of Standard. On December 31, 20X9, the trial balances of the two companies are on the next page.
Required: Prepare the eliminating entries needed as of December 31, 20X9, and complete the worksheet.
Hint: It may be helpful but not required to reconcile "Income from Standard" and "Investment in Standard" Accounts through the equity adjustments.
Attachment:- Assignment.rar
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