Pullman Corporation Acquired a 90% Interest in Sleeter Company for $6,500,000

question 4

Essay

Pullman Corporation acquired a 90% interest in Sleeter Company for $6,500,000 on January 1 2013.At that time Sleeter Company had common stock of $4,500,000 and retained earnings of $1,800,000.The balance sheet information available for Sleeter Company on January 1, 2013, showed the following:
The equipment had a remaining useful life of ten years.Sleeter Company reported $240,000 of net income in 2013 and declared $60,000 of dividends during the year.
Required:
Prepare the workpaper entries assuming the cost method is used, to eliminate dividends, eliminate the investment account, and to allocate and depreciate the difference between implied and book value for 2013.

---

Definitions:

Design

The process of creating a plan or convention for the construction of an object, system, or measurable human interaction.

Visuals

Graphic elements such as images, charts, and videos used in communication to enhance understanding, engagement, and retention of information.

Contemporary Audiences

Modern or current audiences who engage with media, art, or performances in the present time.

Reading Skills

The ability to comprehend, interpret, and derive meaning from written text.