On January 1,2011,Brody Company acquired an 80% interest in Kristin Company for $240,000 cash.On January 1,2011,Kristin Company had the following assets and liabilities:
Push-down accounting is used for the acquisition.Both companies use the entity theory.
Required:
1.What is the goodwill associated with Kristin Company on January 1,2011?
2.Prepare the journal entry(ies)on Kristin's books on January 1,2011.
3.Prepare the journal entry(ies)on Brody's books on January 1,2011.
4.Prepare the elimination entry(ies)on the consolidating working papers on January 1,2011.

Question

On January 1,2011,Brody Company acquired an 80% interest in Kristin Company for $240,000 cash.On January 1,2011,Kristin Company had the following assets and liabilities:
  Push-down accounting is used for the acquisition.Both companies use the entity theory.
Required:
1.What is the goodwill associated with Kristin Company on January 1,2011?
2.Prepare the journal entry(ies)on Kristin's books on January 1,2011.
3.Prepare the journal entry(ies)on Brody's books on January 1,2011.
4.Prepare the elimination entry(ies)on the consolidating working papers on January 1,2011.

Quizplus · Accepted Answer

The Answer of On January 1,2011,Brody Company acquired an 80% interest in Kristin Company for $240,000 cash.On January 1,2011,Kristin Company had the following assets and liabilities:
  Push-down accounting is used for the acquisition.Both companies use the entity theory.
Required:
1.What is the goodwill associated with Kristin Company on January 1,2011?
2.Prepare the journal entry(ies)on Kristin's books on January 1,2011.
3.Prepare the journal entry(ies)on Brody's books on January 1,2011.
4.Prepare the elimination entry(ies)on the consolidating working papers on January 1,2011.

On January 1,2011,Brody Company Acquired an 80% Interest in Kristin