Use the following information to answer the question(s) below.
On January 1, 2014, Penelope Company acquired a 90% interest in Leah Company for $180,000 cash. On January 1, 2014, Leah Company had the following assets and liabilities:
Push-down accounting is used for the acquisition.
-Party Corporation acquired an 80% interest in Sang Corporation on January 1, 2014 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

Use the following information to answer the question(s) below.
On January 1, 2014, Penelope Company acquired a 90% interest in Leah Company for $180,000 cash. On January 1, 2014, Leah Company had the following assets and liabilities:
  Push-down accounting is used for the acquisition.
-Party Corporation acquired an 80% interest in Sang Corporation on January 1, 2014 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 Use the following information to answer the question(s) below.
On January 1, 2014, Penelope Company acquired a 90% interest in Leah Company for $180,000 cash. On January 1, 2014, Leah Company had the following assets and liabilities:
  Push-down accounting is used for the acquisition.
-Party Corporation acquired an 80% interest in Sang Corporation on January 1, 2014 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.

Use the Following Information to Answer the Question(s) Below