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Fact Pattern: Palmito Co. acquired 90% of the outstanding stock of the Slaughter Co....

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Accounting

Fact Pattern:
Palmito Co. acquired 90% of the outstanding stock of the Slaughter Co. for $250,000 in cash. Palmito had no previous equity interest in Slaughter. Slaughter's identifiable assets acquired and liabilities assumed were reported at their acquisition-date fair values in its separate balance sheet immediately following the acquisition. Slaughter's accounts receivable include a $10,000 receivable from Palmito Slaughter also has a $5,000 account payable to Palmito. Palmito's separate balance sheet and the consolidated balance sheet immediately following the acquisition are presented below:
\table[[,Palmitc,Consolidated],[\table[[Current assets],[Investment in Slaughter]],?bar($220,000),$340,000
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