Eliminating Entries, Goodwill Polaris Company acquires all of the stock of SSC, Inc. for $60...
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Eliminating Entries, Goodwill Polaris Company acquires all of the stock of SSC, Inc. for $60 million in cash. At the date of acquisition, SSC's current assets had a book value of $20 million, its noncurrent assets had a book value of $80 million, and its liabilities had a book value of $90 million. It is determined that the book values of SSC's net assets approximate fair value at the date of acquisition. SSC's shareholders' equity consists of capital stock of $2 million, retained earnings of $9 million (credit balance), and treasury stock of $1 million. Required Prepare the eliminating entries necessary to consolidate the balance sheet accounts of Polaris and SSC at the date of acquisition. Enter answers in millions. Ref. Description Debit Credit (E) Capital stock Investment in SSC (R)
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