Pencil Company acquired 70 percent of Stylus Corporations stock on January 2, 20X3, for $70,700...
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Accounting
Pencil Company acquired 70 percent of Stylus Corporations stock on January 2, 20X3, for $70,700 cash. Summarized balance sheet data for the companies on December 31, 20X2, follow:
Pencil Company
Stylus Corporation
Book Value
Fair Value
Book Value
Fair Value
Cash
$ 212,000
$ 212,000
$ 51,000
$ 51,000
Other Assets
402,000
402,000
121,000
121,000
Total Debits
$ 614,000
$ 172,000
Current Liabilities
$ 91,000
91,000
$ 71,000
71,000
Common Stock
292,000
51,000
Retained Earnings
231,000
50,000
Total Credits
$ 614,000
$ 172,000
Required:
Prepare a consolidated balance sheet immediately following the acquisition.
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