ProLock acquired all of the stock of Senyo for $15,000,000. At the date of acquisition, Senyo’s $8,000,000 of reported net assets were fairly stated, except land was overvalued by $500,000 and unrecorded in-process R&D was valued at $1,500,000. Senyo’s equity accounts were as follows: Capital Stock $7,000,000 Retained Deficit (500,000) Accumulated other comprehensive income 1,800,000 Treasury Stock (300,000) Total $8,000,000 Required: Prepare the working paper eliminating entries needed to consolidate ProLock and Senyo at the date of acquisition.
ProLock acquired all of the stock of Senyo for $15,000,000. At the date of acquisition, Senyo’s $8,000,000 of reported net assets were fairly stated, except land was overvalued by $500,000 and unrecorded in-process R&D was valued at $1,500,000. Senyo’s equity accounts were as follows: Capital Stock $7,000,000 Retained Deficit (500,000) Accumulated other comprehensive income 1,800,000 Treasury Stock (300,000) Total $8,000,000 Required: Prepare the working paper eliminating entries needed to consolidate ProLock and Senyo at the date of acquisition.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ProLock acquired all of the stock of Senyo for $15,000,000. At the date of acquisition, Senyo’s $8,000,000 of reported net assets were fairly stated, except land was overvalued by $500,000 and unrecorded in-process R&D was valued at $1,500,000. Senyo’s equity accounts were as follows:
|
Capital Stock |
$7,000,000 |
|
Retained Deficit |
(500,000) |
|
Accumulated other comprehensive income |
1,800,000 |
|
|
(300,000) |
|
Total |
$8,000,000 |
Required:
Prepare the working paper eliminating entries needed to consolidate ProLock and Senyo at the date of acquisition.
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