Chapter 3. Consolidated Statements Subsequent to Acquisition. Consolidated statements subsequent to acquisition. Worksheet procedures; Purchase Method Using the Income Distribution Schedule Reporting income for the consolidated company. Maintaining the investment account.
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Subsequent to Acquisition
Worksheet procedures; Purchase Method
Common stock $ 200,000
Retained earnings 400,000
Total Equity 600,000
Ownership interest 80%480,000
Excess cost 320,000 Life Ann Amort
Inventory (80% 50,000) 40,000 140,000
Building (80% 100,000) 80,000204,000
Year 1 100,000 10,000
Year 2 150,000 20,000