Record the journal entry on park books to acquire sand

Reference no: EM132676535

The project Fact is below:

Park Company acquired 100 percent of Sand Company's outstanding stock for $1,450,000 cash on January 1, 2019 and paid $20,000 in fees to their lawyers for completing the deal.

By the end of 2019 it became clear that the research project that led to the in-process R&D was a failure with no future economic benefits.
Selected amounts from Park's and Sand's separate financial statements at December 31, 2020 are presented on the Project Facts tab in the Excel file provided in Canvas.
Park's January 1, 2020, Retained Earnings balance (before any effect from Sand's 2019 income or consolidation amounts in 2019) is $(930,000) (credit balance).
Park has 500,000 common shares outstanding for EPS calculations and reported $2,943,100 for consolidated assets at 1/1/2020.

Problem a) Record the journal entry on Park's books to acquire Sand assuming dissolution occurs, then record the journal entry assuming no dissolution. For the rest of the project, please assume no dissolution.

Problem b) a schedule showing the changes in the Investment in Sand account from acquisition through 12/31/2020

Reference no: EM132676535

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