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On December 31, 20Xs. Paragraph Corporation acquired SO percent of Sentence Company's common stock for...

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Accounting

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On December 31, 20Xs. Paragraph Corporation acquired SO percent of Sentence Company's common stock for $136.000. At the acquisition date, the book values and fair values of all of Sentence's assets and liabilities were equal. Paragraph uses the equity method in accounting for its investment. Balance sheet information provided by the companies at December 31, 20x8, immediately following the acquisition is as follows: Page 129 Cash Accounts Receivable Inventory Fixed Assets (net) Investment in Sentence Company Total Debits Accounts Payable Notes Payable Common Stock Retained Earnings Total Credits Paragraph Sentence Corporation Company S 74.000 S 20.000 120.000 70.000 150.000 90.000 350.000 240.000 136.000 S860.000 S420.000 $ 65,000 S 30.000 350.000 220,000 150.000 90.000 295.000 50.000 S360.000 S420.000 Required Prepare a consolidated balance sheet for Paragraph at December 31, 20XS

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