Current Attempt in Progress Pascal Corporation purchased 90% of the stock of Salzer Company for $2,053,530 on January 1, 2015. On this date, the fair value of the assets and liabilities of Salzer Company was equal to their book value except for the inventory and equipment accounts. The inventory had a fair value of $724,400 and a book value of $598.,200. The equipment had a book value of $912,700 and a fair value of $1,090,800. The balances in Salzer Company's common stock and retained earnings accounts on the date of acquisition were $1,196,600 and $602.300, respectively. In general journal form, prepare the entry on Salzer Company's books to record the effect of the pushed down values implied by the purchase of its stock by Pascal Company assuming that values are allocated on the basis of the fair value of Salzer Company as a whole imputed from the transaction. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Account Titles and Explanation eTextbook and Media List of Accounts Debit Credit
Current Attempt in Progress Pascal Corporation purchased 90% of the stock of Salzer Company for $2,053,530 on January 1, 2015. On this date, the fair value of the assets and liabilities of Salzer Company was equal to their book value except for the inventory and equipment accounts. The inventory had a fair value of $724,400 and a book value of $598.,200. The equipment had a book value of $912,700 and a fair value of $1,090,800. The balances in Salzer Company's common stock and retained earnings accounts on the date of acquisition were $1,196,600 and $602.300, respectively. In general journal form, prepare the entry on Salzer Company's books to record the effect of the pushed down values implied by the purchase of its stock by Pascal Company assuming that values are allocated on the basis of the fair value of Salzer Company as a whole imputed from the transaction. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Account Titles and Explanation eTextbook and Media List of Accounts Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current Attempt in Progress
Pascal Corporation purchased 90% of the stock of Salzer Company for $2,053,530 on January 1, 2015. On this date, the fair value of
the assets and liabilities of Salzer Company was equal to their book value except for the inventory and equipment accounts. The
inventory had a fair value of $724,400 and a book value of $598.200. The equipment had a book value of $912.700 and a fair value of
$1,090,000
The balances in Salzer Company's common stock and retained earnings accounts on the date of acquisition were $1,196,600 and
$602,300, respectively,
In general journal form, prepare the entry on Salzer Company's books to record the effect of the pushed down values implied by the
purchase of its stock by Pascal Company assuming that values are allocated on the basis of the fair value of Salzer Company as a whole
imputed from the transaction. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles
are automatically indented when the amount is entered. Do not indent manually)
Account Titles and Explanation
eTextbook and Media
List of Accounts
Debit
Credit
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