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Tinkerbell Corporation

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Question;On December 31, 2013, Tinkerbell Corporation and Brittany Company entered into a business combination in which Tinkerbell acquired all of Brittany?s common stock for $955,000. At the date of combination, Brittany had common stock outstanding with a par value of $120,000, additional paid in capital of $420,000, and retained earnings of $195,000. The fair values and book values of all Brittany?s assets and liabilities were equal at the date of combination, except for the following:Required:a. Record the acquisition of Brittany?s stock on Tinkerbell?s books on December 31, 2013.b. Record any entries that would be made on December 31, 2013, on Brittany?s books related to the business combination if push-down accounting is employed.c. Present all elimination entries that would appear in the worksheet to prepare a consolidated balance sheet immediately after the combination.d. Present all entries that Tinkerbell would record during 2014 related to its investment in Brittany if Tinkerybell uses the equity method of accounting for its investments.e. Present all elimination entries that would appear in the worksheet to prepare a full set of consolidated financial statements for the year 2014.f. Present all elimination entries that would appear in the worksheet to prepare a full set of consolidated financial statements for the year 2015.

 

Paper#39824 | Written in 18-Jul-2015

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