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Black Co.and Blue Co.




The following are preliminary financial statements for Black Co. and Blue Co. for the year ending December 31, 20X1 prior to Black's acquisition of Blue.;Black co Blue Co;Sales 360,000 228,000;Expenses (240,000) (132,000);Net income 120,000 96,000;Retained earnings 1/1/11 480,000 252,000;Net income (from above) 120,000 96,000;Dividends paid (36,000) 0;Retained earnings 12/31/11 564,000 348,000;Current assets 360,000 120,000;Land 120,000 108,000;Building (net) 480,000 336,000;Total assets 960,000 564,000;Liabilities 108,000 132,000;Common Stock 192,000 72,000;Add'l paid-in capital 96,000 12,000;Retained earnings 12/31/11 564,000 348,000;Total Liab & Stock. Equity 960,000 564,000;On December 31, 20X1 (subsequent to the preceding statements), Black exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Blue. Black's stock on that date has a fair value of $60 per share. Black was willing to issue 10,000 shares of stock because Blue's land was appraised at $204,000. Black also paid $14,000 to several attorneys and accountants who assisted in creating this combination.;Required;Assuming that these two companies retained their separate legal identities, prepare a consolidation worksheet as of December 31, 20X1 after the acquisition transaction is completed.


Paper#75102 | Written in 18-Jul-2015

Price : $19