The Following Are Preliminary Financial Statements for Black Co

question 123

Essay

The following are preliminary financial statements for Black Co. and Blue Co. for the year ending December 31, 2021, prior to Black's acquisition of Blue Co. On December 31, 2021 (subsequent to the preceding statements), Black exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Blue. Black's stock on that date has a fair value of $50 per share. Black was willing to issue 10,000 shares of stock because Blue's land was appraised at $204,000. Black also paid $14,000 to attorneys and accountants who assisted in creating this combination.Required: Assuming that these two companies retained their separate legal identities, prepare a consolidation worksheet as of December 31, 2021.

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Definitions:

Cardiac Muscle

A specialized type of involuntary striated muscle found only in the heart, responsible for contracting and pumping blood throughout the body.

Endomysium

A connective tissue covering that surrounds individual muscle cells.

Perimysium

A layer of connective tissue that surrounds muscle fibers, grouping them into fascicles.

Fascia

A band or sheet of connective tissue, primarily collagen, beneath the skin that attaches, stabilizes, encloses, and separates muscles and other internal organs.