On January 1, 20X6, Rivers Company acquired 80% of the outstanding shares of common stock of Joan Company for $72. During 20X6, Joan Company had net income of $10, and Rivers Company had net income of
$40. None of the net income for either company was the result of intercompany sales. All net income for both companies is in the form of cash.
Prepare the following:
a. The consolidated balance sheet immediately after the acquisition
b. The elimination entry necessary on December 31, 20X6
c. The consolidated balance sheet at December 31, 20X6

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The Answer of  On January 1, 20X6, Rivers Company acquired 80% of the outstanding shares of common stock of Joan Company for $72. During 20X6, Joan Company had net income of $10, and Rivers Company had net income of
$40. None of the net income for either company was the result of intercompany sales. All net income for both companies is in the form of cash.
Prepare the following:
a. The consolidated balance sheet immediately after the acquisition
b. The elimination entry necessary on December 31, 20X6
c. The consolidated balance sheet at December 31, 20X6

On January 1, 20X6, Rivers Company Acquired 80% of the Outstanding