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Randall Corporation acquired 80 percent of Sharp Company’s voting shares on January 1 20X4 for $280000 in cash and marketable securities At that date the non controlling interest

Randall Corporation acquired 80 percent of Sharp Company’s voting shares on January 1, 20X4, for $280,000 in cash and marketable securities. At that date, the noncontrolling interest had a fair value of $70,000 and Sharp reported net assets of $300,000. Assume Randall uses the fully adjusted equity method. Trial balances for the two companies on December 31, 20X7, are as follows:

 

Randall Corporation

Sharp Company

Item

Debit

Credit

Debit

Credit

Cash

$ 130,300

 

$ 10,000

 

Accounts Receivable

80,000

 

70,000

 

Inventory

170,000

 

110,000

 

Buildings & Equipment

600,000

 

400,000

 

Investment in Sharp Company Stock

293,000

 

 

 

Cost of Goods Sold

416,000

 

202,000

 

Depreciation & Amortization

30,000

 

20,000

 

Other Expenses

24,000

 

18,000

 

Dividends Declared

50,000

 

25,000

 

Accumulated Depreciation

 

$ 310,000

 

$120,000

Accounts Payable

 

100,000

 

15,200

Bonds Payable

 

300,000

 

100,000

Bond Premium

 

 

 

4,800

Common Stock

 

200,000

 

100,000

Additional Paid-in Capital

 

 

 

20,000

Retained Earnings

 

337,500

 

215,000

Sales

 

500,000

 

250,000

Other Income

 

20,400

 

30,000

Income from Sharp Company

 

25,400

 

 

 

1,793,300

1,793,300

$855,000

$855,000

May 13 2020 View more View Less

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