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  3. at the beginning of 2009, presidio company purchas

At the beginning of 2009, Presidio Company purchased 95% of the common stock of Succo...

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Accounting

At the beginning of 2009, Presidio Company purchased 95% of the common stock of Succo Company for $533,615. On that date, Succo Companys stockholders equity consisted of the following:

Common stock $323,500
Other contributed capital 107,200
Retained earnings 131,000
Total $561,700

During 2017, Succo Company reported net income of $43,400 and distributed dividends in the amount of $18,300. Succo Companys retained earnings balance at the end of 2016 amounted to $158,500. Presidio Company uses the equity method. Prepare in general journal form the workpaper entries necessary in the compilation of consolidated financial statements on December 31, 2017.

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