December 31, 2020 and December 31, 2021. Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021.
Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2020. As of that date, Abernethy has the following
During 2020, Abernethy reported net income of $124,500 while declaring and paying dividends of $16,000. During 2021, Abernethy reported net income of $167,750 while declaring and paying dividends of $41,000.
Assume the Chapman Company acquired Abernethy’s common stock for $819,850 in cash. As of January 1, 2020, Abernethy’s land had a fair value of $141,900 its buildings were valued at $251,800, and its equipment was appraised at $306,750. Chapman uses the equity method for this investment.
Prepare consolidation worksheet entries for December 31, 2020 and December 31, 2021.
Prepare entry A to recognize allocations attributed to specific accounts at acquisition date for 2021.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
