Plaza Corporation acquired 100 percent of Square Corporation's voting common stock on December 31, 20X4,...
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Accounting
Plaza Corporation acquired 100 percent of Square Corporation's voting common stock on December 31, 20X4, for $413,000. At the date of combination, Square reported the following:
Assets
Liabilities
Cash
$ 121,000
Current Liabilities
$ 75,000
Inventory
104,000
Long-Term Liabilities
226,000
Buildings (net)
422,000
Common Stock
115,000
Retained Earnings
231,000
Total
$ 647,000
Total
$ 647,000
At December 31, 20X4, the book values of Square's net assets and liabilities approximated their fair values, except for buildings, which had a fair value of $11,000 less than book value, and inventories, which had a fair value $34,000 more than book value.
Required:
Plaza Corporation wishes to prepare a consolidated balance sheet immediately following the business combination. Prepare the consolidation entry or entries needed to prepare a consolidated balance sheet at December 31, 20X4.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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