Plump Corporation acquired 100 percent of Slim Corporation's common stock on December 31, 20X2, for...
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Accounting
Plump Corporation acquired 100 percent of Slim Corporation's common stock on December 31, 20X2, for $242,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:
Item
Plump Corporation
Slim Corporation
Cash
$ 29,000
$ 21,000
Accounts Receivable
102,000
44,000
Inventory
114,000
65,000
Buildings and Equipment (net)
235,000
153,000
Investment in Slim Corporation
242,000
Total Assets
$ 722,000
$ 283,000
Accounts Payable
$ 73,000
$ 20,000
Notes Payable
141,000
62,000
Common Stock
97,000
58,000
Retained Earnings
411,000
143,000
Total Liabilities and Stockholders Equity
$ 722,000
$ 283,000
At the date of the business combination, Slim's net assets and liabilities approximated fair value except for inventory, which had a fair value of $89,000, and buildings and equipment (net), which had a fair value of $170,000.
Required:
Give the consolidation entry or entries needed to prepare a consolidated balance sheet immediately following the business combination.
Prepare a consolidation balance sheet worksheet.
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