Parrot Corporation acquired 90% of Swallow Co. on January 1, 2011 for $27,000 cash. Swallow's stockholders' equity consisted of $10,000 of Capital Stock and $5,000 of Retained Earnings. The difference between the fair value and book value of Swallow's net assets was allocated to a patent amortized over 5 years. The separate financial statements for Parrot and Swallow appear in the first two columns of the partially completed consolidation working papers.
Parrot Corporation acquired 90% of Swallow Co. on January 1, 2011 for $27,000 cash. Swallow's stockholders' equity consisted of $10,000 of Capital Stock and $5,000 of Retained Earnings. The difference between the fair value and book value of Swallow's net assets was allocated to a patent amortized over 5 years. The separate financial statements for Parrot and Swallow appear in the first two columns of the partially completed consolidation working papers.
Parrot Corporation acquired 90% of Swallow Co. on January 1, 2011 for $27,000 cash. Swallow's stockholders' equity consisted of $10,000 of Capital Stock and $5,000 of Retained Earnings. The difference between the fair value and book value of Swallow's net assets was allocated to a patent amortized over 5 years. The separate financial statements for Parrot and Swallow appear in the first two columns of the partially completed consolidation working papers.
on January 1, 2011 for $27,000 cash when Swallow's
stockholders' equity consisted of $10,000 of Capital Stock and $5,000 of Retained Earnings. The difference between the fair value and book value of Swallow's net assets was allocated solely to a patent amortized over 5 years. The separate company statements for Parrot and Swallow appear in the first two columns of the partially completed consolidation working papers.