The Following Are Preliminary Financial Statements for Black Co

question 44

Essay

The following are preliminary financial statements for Black Co. and Blue Co. for the year ending December 31, 2013 prior to Black's acquisition of Blue. 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 $60 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 after the acquisition transaction is completed.

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Definitions:

Compound

A thing that is composed of two or more separate elements.

Atomic

Relating to atoms, the smallest component of an element having the chemical properties of the element.

Truth-functional Compound

A compound statement in logic whose truth value is determined by the truth values of its components.

Quantifier

A symbol in logic that indicates how many examples within a discussion domain meet the criteria of an unfilled equation.