Summarized balance sheet data for the two companies

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Reference no: EM131025166

On June 10, 20X8, Game Corporation acquired 70 percent of Amber Company’s common stock. The fair value of the noncontrolling interest was $21,000 on that date. Summarized balance sheet data for the two companies immediately after the stock purchase are as follows.


Game Corp.		Amber Company

Item	Book Value		Book Value		Fair Value
Cash	$	34,800	$	13,000	$	13,000
Accounts Receivable		41,000		18,000		18,000
Inventory		87,000		28,000		33,000
Buildings & Equipment (net)		138,000		61,000		81,000
Investment in Amber Stock		49,000

Total	$	349,800	$	120,000	$	145,000

Accounts Payable	$	24,000	$	3,000		3,000
Bonds Payable		215,800		72,000		72,000
Common Stock		45,000		14,000
Retained Earnings		65,000		31,000

Total	$	349,800	$	120,000	$	75,000

Record the consolidation entries required to prepare a consolidated balance sheet immediately after the purchase of Amber Company shares.

Reference no: EM131025166

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