8 Blank Corporation acquired 100 percent of Faith Corporation's common stock on December 31, 20X2, for $216,000. Datafrom the balance sheets of the two companies included the following amounts as of the date of acquisition:ItemAssetsCashAccounts ReceivableInventoryBuildings and Equipment (net)Investment in Faith Corporation StockTotal AssetsLiabilities and Stockholders' EquityAccounts PayableNotes PayableCommon StockRetained EarningsTotal Liabilities and Stockholders' EquityBlankCorporationFaithCorporation$ 57,00078,000106,000219,000216,000$ 676,000$ 87,000150,00089,000350,000$ 36,00050,00071,000150,000$ 307,000$ 19,00072,00050,000166,000$ 676,000$ 307,000At the date of the business combination, the book values of Faith's net assets and liabilities approximated fair value.Assume that Faith Corporation's accumulated depreciation on buildings and equipment on the acquisition date was$22,000.Required:a. Give the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following thebusiness combination.b. Prepare a consolidated balance sheet worksheet.

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Answered: Blank Corporation acquired 100 percent…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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