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    On January 1 2014 Palmer Company Acquired A 90 Interest

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    Charlotte
    Palmer Company acquired a 90% interest in Stevens Company on January 1, 2014 for $1,000,000. At the acquisition date, Stevens Company had stockholders' equity of $500,000 in common stock and $190,000 in retained earnings. Stevens Company also had equipment with a remaining useful life of 10 years and inventory that was all sold in 2014.

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    On January 1 2014 Palmer Company Acquired A 90 Interest

    Uploaded by

    Charlotte
    246 views1 page
    Palmer Company acquired a 90% interest in Stevens Company on January 1, 2014 for $1,000,000. At the acquisition date, Stevens Company had stockholders' equity of $500,000 in common stock and $190,000 in retained earnings. Stevens Company also had equipment with a remaining useful life of 10 years and inventory that was all sold in 2014.

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    On January 1 2014 Palmer Company Acquired a 90 Interest

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    Palmer Company acquired a 90% interest in Stevens Company on January 1, 2014 for $1,000,000. At the acquisition date, Stevens Company had stockholders' equity of $500,000 in common stock and $190,000 in retained earnings. Stevens Company also had equipment with a remaining useful life of 10 years and inventory that was all sold in 2014.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    246 views1 page

    On January 1 2014 Palmer Company Acquired A 90 Interest

    Uploaded by

    Charlotte
    Palmer Company acquired a 90% interest in Stevens Company on January 1, 2014 for $1,000,000. At the acquisition date, Stevens Company had stockholders' equity of $500,000 in common stock and $190,000 in retained earnings. Stevens Company also had equipment with a remaining useful life of 10 years and inventory that was all sold in 2014.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    (answered) On January 1 2014 Palmer Company acquired a

    90 interest
    On January 1, 2014, Palmer Company acquired a 90% interest in Stevens Company at a cost
    of $1,000,000. At the purchase date, Stevens Company's stockholders' equity consisted of the
    following:Common stock..............................$500,000Retained earnings............................190,
    GET THE ANSWER>> https://solutionlly.com/downloads/on-january-1-2014-palmer-company-
    acquired-a-90-interest
    On January 1, 2014, Palmer Company acquired a 90% interest in Stevens Company at a cost
    of $1,000,000. At the purchase date, Stevens Company's stockholders' equity consisted of the
    following:Common stock..............................$500,000Retained
    earnings............................190,000An examination of Stevens Company's assets and liabilities
    revealed the following at the date of acquisition:Additional Information-Date of
    AcquisitionStevens Company's equipment had an original life of 15 years and a remaining
    useful life of 10 years. All the inventory was sold in 2014. Stevens Company purchased its
    bonds payable on the open market on January 10, 2014, for $150,000 and recognized a gain of
    $55,556.Financial statement data for 2016 are presented here:Required:A. What method is
    Palmer using to account for its investment in Stevens? How can you tell?B. Prepare in general
    journal form the workpaper entry to allocate and depreciate the difference between book value
    and the value implied by the purchase price in the December 31, 2014, consolidated statements
    workpaper.C. Prepare a consolidated financial statements workpaper for the year ended
    December 31, 2016.D. Prepare in good form a schedule or t-account showing the calculation of
    the controlling and noncontrolling interest in consolidated net income for the year ended
    December 31, 2016.View Solution:
    On January 1 2014 Palmer Company acquired a 90 interest
    GET THE ANSWER>> https://solutionlly.com/downloads/on-january-1-2014-palmer-company-
    acquired-a-90-interest

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