Exercise 4-19(Static) Wholly Owned Subsidiary with a Differential LO 4-3 Stick Corporation is...
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Accounting
Exercise Static Wholly Owned Subsidiary with a Differential LO
Stick Corporation is a wholly owned subsidiary of Point Corporation. Point acquired ownership of Stick on January for $ above Stick's reported net assets. At that date, Stick reported common stock outstanding of $ and retained earnings of $ The differential is assigned to equipment with an economic life of seven years at the date of the business combination. Stick reported net income of $ and paid dividends of $ in
Required:
a Prepare the journal entries recorded by Point Corporation during on its books if Point accounts for its investment in Stick using the equity method.
b Prepare the consolidating entries needed at December to prepare consolidated financial statements.
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