Peace Computer Corporation acquired 75 percent of Symbol Software Company's stock on January 2, 20X3, by issuing bonds with a par value of $50,000 and a fair value of $67.500 in exchange for the shares. Summarized balance sheet data presented for the companies just before the acquisition follow:
Peace Computer Corporation acquired 75 percent of Symbol Software Company's stock on January 2, 20X3, by issuing bonds with a par value of $50,000 and a fair value of $67.500 in exchange for the shares. Summarized balance sheet data presented for the companies just before the acquisition follow:
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:E3-8 Subsidiary Acquired with Bonds
Peace Computer Corporation acquired 75 percent of Symbol Software Company's stock on January 2, 20X3, by issuing bonds with
a par value of $50,000 and a fair value of $67,500 in exchange for the shares. Summarized balance sheet data presented for the
companies just before the acquisition follow:
Cash
Other Assets
Total Debits
Current Liabilities
Common Stock
Retained Earnings
Total Credits
Peace Computer Corporation
Book Value
$200,000
400,000
$600,000
$ 100,000
300,000
200,000
$600,000
Fair Valne
$200,000
400,000
100,000
Required
Prepare a consolidated balance sheet immediately following the acquisition.
Symbol Software Company
Book Valne
$ 50,000
120,000
$170,000
$ 80.000
50,000
40,000
$170,000
Fair Value
$ 50,000
120,000
80,000
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