Eliminating Entries, Goodwill Polaris Company acquires all of the stock of SSC, Inc. for $60 million in cash. At the date of acquisition, SSC's current assets had a book value of $20 million, its noncurrent assets had a book value of $80 million, and its liabilities had a book value of $90 million. It is determined that the book values of SSC's net assets approximate fair value at the date of acquisition. SSC's shareholders' equity consists of capital stock of $2 million, retained earnings of $9 million (credit balance), and treasury stock of $1 million. Required Prepare the eliminating entries necessary to consolidate the balance sheet accounts of Polaris and SSC at the date of acquisition. Enter answers in millions. Description Ref. (E) Capital stock (R) Investment in SSC ¶ Debit Credit

Eliminating Entries, Goodwill Polaris Company acquires all of the stock of SSC, Inc. for $60 million in cash. At the date of acquisition, SSC's current assets had a book value of $20 million, its noncurrent assets had a book value of $80 million, and its liabilities had a book value of $90 million. It is determined that the book values of SSC's net assets approximate fair value at the date of acquisition. SSC's shareholders' equity consists of capital stock of $2 million, retained earnings of $9 million (credit balance), and treasury stock of $1 million. Required Prepare the eliminating entries necessary to consolidate the balance sheet accounts of Polaris and SSC at the date of acquisition. Enter answers in millions. Description Ref. (E) Capital stock (R) Investment in SSC ¶ Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Eliminating Entries, Goodwill
Polaris Company acquires all of the stock of SSC, Inc. for $60 million in cash. At the date of
acquisition, SSC's current assets had a book value of $20 million, its noncurrent assets had a
book value of $80 million, and its liabilities had a book value of $90 million. It is determined
that the book values of SSC's net assets approximate fair value at the date of acquisition. SSC's
shareholders' equity consists of capital stock of $2 million, retained earnings of $9 million
(credit balance), and treasury stock of $1 million.
Required
Prepare the eliminating entries necessary to consolidate the balance sheet accounts of Polaris
and SSC at the date of acquisition.
Enter answers in millions.
Description
Ref.
(E) Capital stock
(R)
Investment in SSC
¶
Debit
Credit

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