*On January 2, 2014, Parr Company Purchased 100% of the Ordinary

question 28

Essay

*On January 2, 2014, Parr Company purchased 100% of the ordinary shares of Sneed Company for $420,000. The fair value of Sneed Company's assets and liabilities are equal to their book values except that land has a fair value of $120,000 and buildings have a fair value of $260,000.
Instructions
(a) Complete the worksheet below for preparing a consolidated statement of financial position. You may add accounts to the worksheet if necessary.
(b) Prepare a consolidated statement of financial position for Parr Company and Subsidiary on January 2, 2014.

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Definitions:

Double Jeopardy

A legal principle that prohibits an individual from being tried twice for the same crime on the same set of facts.

Search Warrant

A legal document authorized by a court that permits law enforcement to conduct a search of a specific location and seize evidence related to a crime.

Search Warrant

A legal document issued by a judge or magistrate that authorizes law enforcement to conduct a search of a person or location for evidence of a crime.

Substantive Due Process

A principle allowing courts to protect certain fundamental rights from government interference, under the due process clauses of the Constitution.