Pareto Manufacturing Company acquired 90 percent of Sines Corporation’s outstanding common stock on December 31, 2020, for $3,003,750. At the date of acquisition, the fair value of the noncontrolling interest was $333,750, and Sines reported common stock outstanding of $1,343,750, premium on common stock of $445,500, and retained earnings of $900,000. The book values and fair values of Sines’ assets and liabilities were equal, except for land, which was worth $295,500 more than its book value. On January 1, 2021, Sines sold equipment to Pareto for $281,250. Sines had purchased the equipment for $463,750 on January 1, 2019 and was depreciating it on a straight-line basis with a 10-year expected life and no anticipated salvage value. The equipment’s total expected life is unchanged as a result of the intercompany sale. Sines reported $50,000 net income for 2021 but declared no dividends.
Pareto Manufacturing Company acquired 90 percent of Sines Corporation’s outstanding common stock on December 31, 2020, for $3,003,750. At the date of acquisition, the fair value of the noncontrolling interest was $333,750, and Sines reported common stock outstanding of $1,343,750, premium on common stock of $445,500, and
On January 1, 2021, Sines sold equipment to Pareto for $281,250. Sines had purchased the equipment for $463,750 on January 1, 2019 and was
I need help with the consolidation/elimination entries to do the consolidated financial statements.
No handwritten please
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