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Acquisition of Preferred Shares The summarized balance sheet of Separate Company on January 1 20X3 contained the following amounts Total Assets $350000 Total Liabilities

Acquisition of Preferred Shares The summarized balance sheet of Separate Company on January 1 20X3 contained the following amounts Total Assets $350000 Total Liabilities

Acquisition of Preferred Shares

The summarized balance sheet of Separate Company on January 1, 20X3, contained the following amounts:

Total Assets

$350,000

Total Liabilities

$ 50,000

 

 

Preferred Stock

100,000

 

 

Common Stock

50,000

 

 

Retained Earnings

150,000

Total Assets

$350,000

Total Liabilities & Equities

$350,000

On January 1, 20X3, Joint Corporation acquired 70 percent of the common shares and 60 percent of the preferred shares of Separate Company at underlying book value. At that date, the fair value of the noncontrolling interest in Separate’s common stock was equal to 30 percent of the book value of its common stock.

Required

Give the worksheet elimination entries needed to prepare a consolidated balance sheet immediately following Joint’s purchase of shares.

Tripti 09-Jul-2020

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