Purchase method for consolidation entries

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Reference no: EM1357310

Pacific has the following account balances as of Feb 1.

Inventory....................................$600,000

Land..........................................500,000

Buildings (net) (valued at $1,000,000)........900,000

Common Stock ($10 par value)..................(800,000)

Retained earnings 1/1.........................(1,100,000)

Revenues......................................(600,000)

Expences......................................500,000

Western pays $2,020,000 in cash. An additional $20,000 is paid in direct combination costs. For each of the following accounts, determine what balance will be included in a Feb 1 consolidation.

a) Inventory

b) Goodwill

c) Expenses

d) Buildings

e) Land

Reference no: EM1357310

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