Fineline Pencil Company acquired 80 percent of Smudge Eraser Corporations stock on January 2, 20X3,...
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Accounting
Fineline Pencil Company acquired 80 percent of Smudge Eraser Corporations stock on January 2, 20X3, for $104,000 cash. Summarized balance sheet data for the companies on December 31, 20X2, are as follows:
Fineline Pencil Company
Smudge Eraser Corporation
Book Value
Fair Value
Book Value
Fair Value
Cash
$
210,000
$
210,000
$
64,000
$
64,000
Other Assets
401,000
401,000
133,000
133,000
Total Debits
$
611,000
$
197,000
Current Liabilities
$
87,000
87,000
$
67,000
67,000
Common Stock
285,000
64,000
Retained Earnings
239,000
66,000
Total Credits
$
611,000
$
197,000
Required:
Prepare a consolidated balance sheet immediately following the acquisition.
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