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Poindexter Company bought 80% of the common stock of Shaw Company on January 1,2019. On...

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Accounting

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Poindexter Company bought 80% of the common stock of Shaw Company on January 1,2019. On that date, the fair value of all of Shaw Company's stock was $321,000, though shareholder equity accounts on that date totaled $190,000. Poindexter paid $260,000 cash for its shares. Appraisals at the acquisition date showed the following: In addition, there is an unrecorded patent having a four-year life valued at 40,000 . Following are the balances on December 31, 2019: Required: 1) Prepare the consolidation entries at December 31, 2019. Please include all of your work, including the goodwill calculation, amortization schedule and income tie out. 2) Prepare a consolidating worksheet 3) Prepare a set of consolidated financial statements (no need for statement of cash flows)

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