Please show clear cut working clear financial statements to answer questions thank you. ...
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Accounting
Please show clear cut working clear financial statements to answer questions thank you.
Constructing the Consolidated Balance Sheet at Acquisition On January I of the current year, Liu Company purcliased all of the common shares of Reed Conipany. for $380,000 cash. Balance sheets of the two fims inmediately after the acyuisition follow. During purchase negotiations. Reed's PPE was appraised at $332,000, and all of its remaining assets and liabilities were appraised at values approximating their book values. Liu also concluded that an additional $33,000 (for goodwill) demanded by Recd's sharcholders was warranted because Reed's earning power was better than the industry average. Prepare the consolidating adjustments and the consolidated balance heet at acquisition
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