On January 1, 2024, Windsor Company purchased 8,896 shares of Sheridan Company's common stock for $131,000. Immediately afterthe stock acquisition, the statements of financial position of Windsor and Sheridan appeared as follows:AssetsWindsorSheridanCash$40,850$20,370Accounts receivable50,18032,780Inventory44,02026,230Investment in Sheridan Company131,000Plant assets160,360101,030Accumulated depreciation-plant assets(55,790)(18,940)Total$370,620$161,470Liabilities and Owners' EquityCurrent liabilities$16,910$23,570Mortgage notes payable40,080Common stock, $10 par value112,700111,200Other contributed capital125,21015,650Retained earnings75,72011,050Total$370,620$161,470(a1)(a2)Prepare a schedule to compute the difference between book value of equity and the value implied by the purchase price. Anydifference between the book value of equity and the value implied by the purchase price relates to subsidiary plant assets.$ParentShare$Non-ControllingShare$$$EntireValue

On January 1, 2024, Windsor Company purchased 8,896 shares of Sheridan Company's common stock for $131,000. Immediately afte the stock acquisition, the statements of financial position of Windsor and Sheridan appeared as follows: Assets Windsor Sheridan Cash $40,850 $20,370 Accounts receivable 50,180 32,780

On January 1, 2024, Windsor Company purchased 8,896 shares of Sheridan Company's common stock for $131,000. Immediately afte the stock acquisition, the statements of financial position of Windsor and Sheridan appeared as follows: Assets Windsor Sheridan Cash $40,850 $20,370 Accounts receivable 50,180 32,780

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

On January 1, 2024, Windsor Company purchased 8,896 shares of Sheridan Company's common stock for $131,000. Immediately after
the stock acquisition, the statements of financial position of Windsor and Sheridan appeared as follows:
Assets
Windsor
Sheridan
Cash
$40,850
$20,370
Accounts receivable
50,180
32,780
Inventory
44,020
26,230
Investment in Sheridan Company
131,000
Plant assets
160,360
101,030
Accumulated depreciation-plant assets
(55,790)
(18,940)
Total
$370,620
$161,470
Liabilities and Owners' Equity
Current liabilities
$16,910
$23,570
Mortgage notes payable
40,080
Common stock, $10 par value
112,700
111,200
Other contributed capital
125,210
15,650
Retained earnings
75,720
11,050
Total
$370,620
$161,470
(a1)
(a2)
Prepare a schedule to compute the difference between book value of equity and the value implied by the purchase price. Any
difference between the book value of equity and the value implied by the purchase price relates to subsidiary plant assets.
$
Parent
Share
$
Non-
Controlling
Share
$
$
$
Entire
Value

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