The following are preliminary financial statements for Black Co.and Blue Co.for the year ending December 31, 2018, prior to Black's acquisition of Blue Co.
On December 31, 2018 (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, 2018.
Definitions:
Controversy
A prolonged public disagreement or heated discussion, often involving differing opinions or viewpoints.
Intrasender Role Conflict
A situation where an individual experiences conflicting demands or messages from the same source.
Synthetic Chemist
A scientist specialized in creating new compounds by synthesizing chemicals in a laboratory.
Lower Cost
Reducing expenses or the amount of resources required to produce goods or services, often to maintain competitiveness or increase profitability.
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