Public Corporation acquired percent of Station Company's voting common stock on January X for $ At the time of
the combination, Station reported common stock outstanding of $ and retained earnings of $ and the fair value of the
noncontrolling interest was $ The book value of Station's net assets approximated market value except for patents that had a
market value of $ more than their book value. The patents had a remaining economic life of ten years at the date of the
business combination. Station reported net income of $ and paid dividends of $ during
Required:
a What balance did Public report as its investment in Station at December times assuming Public uses the equity method in
accounting for its investment?
Balance in investment account
b Prepare the consolidation entry or entries needed to prepare consolidaled financial statements at December times
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
Complete A and B for a thumbs u
