Petrie Corporation acquired all the stock of Slab Company, at an acquisition cost of $25 million in cash. Slab's book value at the time was $18 million. Slab's net assets are reported at amounts approximating market value at the date of acquisition. However, it has previously unreported identifiable intangible assets, valued at $9 million.
Required a. Prepare the entry Petrie makes to record the acquisition.
b. Prepare consolidation eliminating entries (E) and (R) at the date of acquisition.

Question

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The Answer of Petrie Corporation acquired all the stock of Slab Company, at an acquisition cost of $25 million in cash. Slab's book value at the time was $18 million. Slab's net assets are reported at amounts approximating market value at the date of acquisition. However, it has previously unreported identifiable intangible assets, valued at $9 million.
Required a. Prepare the entry Petrie makes to record the acquisition.
b. Prepare consolidation eliminating entries (E) and (R) at the date of acquisition.

Petrie Corporation Acquired All the Stock of Slab Company, at an Acquisition