UNDERSTANDING BUSINESS LL W/CONNECT
UNDERSTANDING BUSINESS LL W/CONNECT
12th Edition
ISBN: 9781264759927
Author: Nickels
Publisher: MCG
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Chapter 16, Problem 2CE
Summary Introduction

To discuss: The task performed, skills needed, pay and opportunity outlook of the public relation specialist.

Introduction: The person that creates and maintains the good public image of the organization, increase the awareness of public about the goals of the organization and design media releases of the company, is known as the public relation specialists.

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EXERCISE 3-5     Treasury Stock Held by Subsidiary LO 8Pool Company purchased 90% of the outstanding common stock of Spruce Company on December31, 2019, for cash. At that time the balance sheet of Spruce Company was as follows:Current assets $1,050,000Plant and equipment 990,000Land 170,000Total assets $2,210,000Liabilities $ 820,000Common stock, $20 par value 900,000Other contributed capital 440,000Retained earnings 150,000Total 2,310,000Less treasury stock at cost, 5,000 shares 100,000Total equities $2,210,000Required:Prepare the elimination entry required for the preparation of a consolidated balance sheet workpaper on December 31, 2019, assuming:(1) The purchase price of the stock was $1,400,000. Assume that any difference between thebook value of net assets and the value implied by the purchase price relates to subsidiary land.(2) The purchase price of the stock was $1,160,000. Assume that the subsidiary land has a fairvalue of $180,000, and the other assets and liabilities are…
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