Public Corporation acquired percent of Station Company's voting common stock on January 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 five 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 X 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 consolidated financial statements at December
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
