On May 31, 2006, Ping Corporation paid $300,000, including direct out-of-pocket costs of the business combination, for 82% of the outstanding common stock of Spring Company, which became a subsidiary. Differences between current fair values and carrying amounts of identifiable net assets of Spring Company on May 31, 2006, were limited to the following:
Complete the following working paper for consolidated balance sheet of Ping Corporation and subsidiary. Do not prepare a working paper elimination in journal entry format; however, explain the elimination on the working paper. Disregard income taxes.
Explanation of elimination: (a)

Question

On May 31, 2006, Ping Corporation paid $300,000, including direct out-of-pocket costs of the business combination, for 82% of the outstanding common stock of Spring Company, which became a subsidiary. Differences between current fair values and carrying amounts of identifiable net assets of Spring Company on May 31, 2006, were limited to the following:
  Complete the following working paper for consolidated balance sheet of Ping Corporation and subsidiary. Do not prepare a working paper elimination in journal entry format; however, explain the elimination on the working paper. Disregard income taxes.
  Explanation of elimination: (a)

Quizplus · Accepted Answer

The Answer of On May 31, 2006, Ping Corporation paid $300,000, including direct out-of-pocket costs of the business combination, for 82% of the outstanding common stock of Spring Company, which became a subsidiary. Differences between current fair values and carrying amounts of identifiable net assets of Spring Company on May 31, 2006, were limited to the following:
  Complete the following working paper for consolidated balance sheet of Ping Corporation and subsidiary. Do not prepare a working paper elimination in journal entry format; however, explain the elimination on the working paper. Disregard income taxes.
  Explanation of elimination: (a)

On May 31, 2006, Ping Corporation Paid $300,000, Including Direct