Students also viewed
Other sets by this creator
Following is a list of classifications on the balance sheet. Number them in the order in which they normally appear on a balance sheet.
|______||Property, plant, and equipment|
|______||Other noncurrent assets|
Plant Advertising Corporation acquired 60 percent of Seed Manufacturing Company's shares on December 31, 20X1, at underlying book value of $180,000. At that date, the fair value of the non-controlling interest was equal to 40 percent of the book value of Seed Manufacturing. Seed's balance sheet on January 1, 20X7, contained the following balances:
On January 1, 20X7. Seed purchased 2,000 of its own $10 par value common shares from Nonaffiliated Corporation for$42 per share.
Give the consolidation entry needed in preparing a consolidated balance sheet immediately following the purchase of shares by Seed.