Party Corporation acquired an 80% interest in Sang Corporation on January 1,2011 for $20,000.Balance sheet and fair value information on this date is summarized as follows:
Required:
1.Prepare an entry on the books of Sang Corporation to record the push-down adjustment under parent company theory.
2.Prepare an entry on the books of Sang Corporation to record a push-down adjustment under entity theory.

Question

Party Corporation acquired an 80% interest in Sang Corporation on January 1,2011 for $20,000.Balance sheet and fair value information on this date is summarized as follows:
  Required:
1.Prepare an entry on the books of Sang Corporation to record the push-down adjustment under parent company theory.
2.Prepare an entry on the books of Sang Corporation to record a push-down adjustment under entity theory.

Quizplus · Accepted Answer

The Answer of Party Corporation acquired an 80% interest in Sang Corporation on January 1,2011 for $20,000.Balance sheet and fair value information on this date is summarized as follows:
  Required:
1.Prepare an entry on the books of Sang Corporation to record the push-down adjustment under parent company theory.
2.Prepare an entry on the books of Sang Corporation to record a push-down adjustment under entity theory.

Party Corporation Acquired an 80% Interest in Sang Corporation on January