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  • On January 1 2015 Paro Company Purchases 80 of The

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    Muhammad Shahid
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    On January 1, 2015, Paro Company purchased 80% of the common stock of Solar Company for $320,000. Solar Company had common stock, other paid-in capital, and retained earnings of $50,000, $100,000, and $150,000 respectively at the time of purchase. The only undervalued assets of Solar Company were inventory worth $10,000 more than cost and a building worth $30,000 more than book value with a remaining life of 10 years.

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    On January 1, 2015, Paro Company purchased 80% of the common stock of Solar Company for $320,000. Solar Company had common stock, other paid-in capital, and retained earnings of $50,000, $100,000, and $150,000 respectively at the time of purchase. The only undervalued assets of Solar Company were inventory worth $10,000 more than cost and a building worth $30,000 more than book value with a remaining life of 10 years.

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    30 views1 page

    On January 1 2015 Paro Company Purchases 80 of The

    Uploaded by

    Muhammad Shahid
    On January 1, 2015, Paro Company purchased 80% of the common stock of Solar Company for $320,000. Solar Company had common stock, other paid-in capital, and retained earnings of $50,000, $100,000, and $150,000 respectively at the time of purchase. The only undervalued assets of Solar Company were inventory worth $10,000 more than cost and a building worth $30,000 more than book value with a remaining life of 10 years.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    On January 1 2015 Paro Company purchases 80 of the

    #6220
    On January 1, 2015, Paro Company purchases 80% of the common stock of Solar Company for
    $320,000. On this date, Solar has common stock, other paid-in capital in excess of par, and
    retained earnings of $50,000, $100,000, and $150,000, respectively. Net income and dividends
    for two years for Solar Company are as follows:On January 1, 2015, the only undervalued
    tangible assets of Solar are inventory and the building. Inventory, for which FIFO is used, is
    worth $10,000 more than cost. The inventory is sold in 2015. The building, which is worth
    $30,000 more than book value, has a remaining life of 10 years, and straight-line depreciation is
    used. The remaining excess of cost over book value is attributable to goodwill.Complete the
    vertical worksheet for consolidated financial statements for 2016.
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    On January 1 2015 Paro Company purchases 80 of the

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