On January 1,2014,Pauline Company acquired 90% of Stephen Company at a cost of $90,000.On January 1,2014,Stephen Company acquired 10% of Pauline Company at a cost of $10,000.
On January 1,2014,the following data is available:
At December 31,2014,the following data is available:
Assuming the treasury stock method is used,what elimination entry is needed for the Investment in Pauline at December 31,2014?

Question

On January 1,2014,Pauline Company acquired 90% of Stephen Company at a cost of $90,000.On January 1,2014,Stephen Company acquired 10% of Pauline Company at a cost of $10,000.
On January 1,2014,the following data is available: 
At December 31,2014,the following data is available: 
Assuming the treasury stock method is used,what elimination entry is needed for the Investment in Pauline at December 31,2014?

Quizplus · Accepted Answer

The Answer of On January 1,2014,Pauline Company acquired 90% of Stephen Company at a cost of $90,000.On January 1,2014,Stephen Company acquired 10% of Pauline Company at a cost of $10,000.
On January 1,2014,the following data is available: 
At December 31,2014,the following data is available: 
Assuming the treasury stock method is used,what elimination entry is needed for the Investment in Pauline at December 31,2014?

On January 1,2014,Pauline Company Acquired 90% of Stephen Company at a Cost