ABC Inc.has acquired all of the voting shares of DEF Inc and is gathering the necessary data to prepare consolidated financial statements.ABC paid $1,200,000 for its investment.Details of the companies' assets and liabilities on the acquisition date are shown below:
Required:
Assuming that DEF hasn't set up Deferred Tax Asset or Liability accounts,determine the amounts that would be used to prepare the Consolidated Balance Sheet on the acquisition date.Assume a tax rate of 50%.

Question

ABC Inc.has acquired all of the voting shares of DEF Inc and is gathering the necessary data to prepare consolidated financial statements.ABC paid $1,200,000 for its investment.Details of the companies' assets and liabilities on the acquisition date are shown below:  
Required:
Assuming that DEF hasn't set up Deferred Tax Asset or Liability accounts,determine the amounts that would be used to prepare the Consolidated Balance Sheet on the acquisition date.Assume a tax rate of 50%.

Quizplus · Accepted Answer

The Answer of ABC Inc.has acquired all of the voting shares of DEF Inc and is gathering the necessary data to prepare consolidated financial statements.ABC paid $1,200,000 for its investment.Details of the companies' assets and liabilities on the acquisition date are shown below:  
Required:
Assuming that DEF hasn't set up Deferred Tax Asset or Liability accounts,determine the amounts that would be used to prepare the Consolidated Balance Sheet on the acquisition date.Assume a tax rate of 50%.

ABC IncHas Acquired All of the Voting Shares of DEF Inc