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Burch International purchased 70% of the outstanding common stock of Landon Chemical on December 31,...

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Accounting

Burch International purchased 70% of the outstanding common stock of Landon Chemical on December 31, 2021. Burch paid $140,000 for the shares and determined that the fair value of all recorded Landon assets and liabilities approximated their book values, with the exception of a customer list that was not recorded and had a fair value of $10,000, and an expected remaining useful life of 5 years. At the time of purchase, Landon had a stockholders equity consisting of capital stock amounting to goodwill. The separate financial statements at December 31, 2022. appear in the first two columns of the consolidation worksheet shown below.

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a. Complete Income Statement

b. Using the information provided, make a Balance Sheet.

c. Provide the appropriate journal entries for the investor

d. Provide the appropriate elimination entries in the journal.

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