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  3. pencil company acquired 80 percent of stylus corpo

Pencil Company acquired 80 percent of Stylus Corporation's stock on January 2, 20X3, for $108,800...

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Accounting

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Pencil Company acquired 80 percent of Stylus Corporation's stock on January 2, 20X3, for $108,800 cash. Summarized balance sheet data for the companies on December 31, 20X2, follow: Cash Other Assets Total Debits Current Liabilities Common Stock Retained Earnings Total Credits Pencil Company Book Value Fair Value $207,000 $207,000 408,000 408,000 $615,000 $ 89,000 89,000 296,000 230,000 $615,000 Stylus Corporation Book Value Fair Value $ 66,000 66,000 139,000 139,000 $ 205,000 $ 69,000 69,000 66,000 70,000 $ 205,000 Required: Prepare a consolidated balance sheet immediately following the acquisition. PENCIL COMPANY AND SUBSIDIARY Consolidated Balance Sheet January 2, 20X3 Assets Total Assets $ 0 Liabilities and Stockholders' Equity Total Liabilities and Stockholders' Equity $ 0

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