On January 1, 2019, Vacker Co. acquired 70% of Carper Inc. by paying $650,000. This included a $50,000 control premium. Carper reported common stock on that date of $420,000 with retained earnings of $242,000. A building was undervalued in the company's financial records by $28,000. This building had a ten-year remaining life. Copyrights of $80,000 were to be recognized and amortized over 20 years.Carper earned income and paid cash dividends as follows: NI Div Paid 2019 $150,000 $33,600 2020 $166,400 $55,600 2021 $184,000 $75,000 On December 31, 2021, Vacker owed $20,800 to Carper. There have been no changes in Carper's common stock account since the acquisition. 3. List all necessary consolidation entries as of December 31, 2021?
On January 1, 2019, Vacker Co. acquired 70% of Carper Inc. by paying $650,000. This included a $50,000 control premium. Carper reported common stock on that date of $420,000 with
Carper earned income and paid cash dividends as follows:
|
NI |
Div Paid |
|
|
2019 |
$150,000 |
$33,600 |
|
2020 |
$166,400 |
$55,600 |
|
2021 |
$184,000 |
$75,000 |
On December 31, 2021, Vacker owed $20,800 to Carper. There have been no changes in Carper's common stock account since the acquisition.
3. List all necessary consolidation entries as of December 31, 2021?
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