The Following Are Preliminary Financial Statements for Black Co

question 31

Essay

The following are preliminary financial statements for Black Co. and Blue Co. for the year ending December 31, 2013. On December 31, 2013 (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 several 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, 2013.

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Definitions:

Neurons

Cells in the nervous system that transmit information through electrical and chemical signals.

EEG Record

A record or data collected from an electroencephalogram, a test used to evaluate the electrical activity in the brain.

Action Potentials

Brief electrical impulses that serve as the fundamental signals by which neurons communicate with each other.

REM Sleep

A stage of sleep characterized by rapid eye movements, where the brain is highly active and vivid dreaming is most common.