Pyroplex Corporation acquires the voting stock of Systembox Co. on January 1, 2015 at an acquisition cost of $15,300. Systembox's trial balance at the date of acquisition is as follows, along with fair value information for its identifiable net assets:
Goodwill connected with this acquisition is $6,000. As of January 1, 2015, the revaluations have the following estimated lives (all straight-line):
Pyroplex uses the complete equity method to account for its investment in Systembox on its own books. The December 31, 2020 trial balances for Pyroplex and Systembox (six years after acquisition) appear in the consolidation working paper provided.
Required
a. Fill in the consolidation working paper as necessary to consolidate the trial balances of Pyroplex and Systembox at December 31, 2020.
b. Present the 2020 consolidated income statement and the December 31, 2020 consolidated balance sheet, in good form.

Question

Pyroplex Corporation acquires the voting stock of Systembox Co. on January 1, 2015 at an acquisition cost of $15,300. Systembox's trial balance at the date of acquisition is as follows, along with fair value information for its identifiable net assets:
  Goodwill connected with this acquisition is $6,000. As of January 1, 2015, the revaluations have the following estimated lives (all straight-line):
  Pyroplex uses the complete equity method to account for its investment in Systembox on its own books. The December 31, 2020 trial balances for Pyroplex and Systembox (six years after acquisition) appear in the consolidation working paper provided.
  Required
a. Fill in the consolidation working paper as necessary to consolidate the trial balances of Pyroplex and Systembox at December 31, 2020.
b. Present the 2020 consolidated income statement and the December 31, 2020 consolidated balance sheet, in good form.

Quizplus · Accepted Answer

The Answer of Pyroplex Corporation acquires the voting stock of Systembox Co. on January 1, 2015 at an acquisition cost of $15,300. Systembox's trial balance at the date of acquisition is as follows, along with fair value information for its identifiable net assets:
  Goodwill connected with this acquisition is $6,000. As of January 1, 2015, the revaluations have the following estimated lives (all straight-line):
  Pyroplex uses the complete equity method to account for its investment in Systembox on its own books. The December 31, 2020 trial balances for Pyroplex and Systembox (six years after acquisition) appear in the consolidation working paper provided.
  Required
a. Fill in the consolidation working paper as necessary to consolidate the trial balances of Pyroplex and Systembox at December 31, 2020.
b. Present the 2020 consolidated income statement and the December 31, 2020 consolidated balance sheet, in good form.

Pyroplex Corporation Acquires the Voting Stock of Systembox Co