The balance sheet for Lewis Company at January 1,2016 follows:
The balance sheet for Martin Company at January 1,2016 follows:
On January 1,2016,Martin Company paid $154 in cash for 100 percent of the outstanding stock of Lewis Company.The fair value of the assets and liabilities of the Lewis Company were equal to their book value.During the year ended December 31,2016,the Lewis Company had net income of $14 and the Martin Company had net income of $50.There were no intercompany sales.All net income for both companies is in the form of cash.
Required:
A)Prepare the consolidated balance sheet immediately after acquisition of stock in Lewis Company.
B)Prepare the consolidated balance sheet at December 31,2016.

Question

The balance sheet for Lewis Company at January 1,2016 follows:
   The balance sheet for Martin Company at January 1,2016 follows:
   On January 1,2016,Martin Company paid $154 in cash for 100 percent of the outstanding stock of Lewis Company.The fair value of the assets and liabilities of the Lewis Company were equal to their book value.During the year ended December 31,2016,the Lewis Company had net income of $14 and the Martin Company had net income of $50.There were no intercompany sales.All net income for both companies is in the form of cash.
Required: 
A)Prepare the consolidated balance sheet immediately after acquisition of stock in Lewis Company. 
B)Prepare the consolidated balance sheet at December 31,2016.

Quizplus · Accepted Answer

The Answer of The balance sheet for Lewis Company at January 1,2016 follows:
   The balance sheet for Martin Company at January 1,2016 follows:
   On January 1,2016,Martin Company paid $154 in cash for 100 percent of the outstanding stock of Lewis Company.The fair value of the assets and liabilities of the Lewis Company were equal to their book value.During the year ended December 31,2016,the Lewis Company had net income of $14 and the Martin Company had net income of $50.There were no intercompany sales.All net income for both companies is in the form of cash.
Required: 
A)Prepare the consolidated balance sheet immediately after acquisition of stock in Lewis Company. 
B)Prepare the consolidated balance sheet at December 31,2016.

The Balance Sheet for Lewis Company at January 1,2016 Follows