On January 1,2011,Jeff Company Acquired a 90% Interest in Margaret

question 1

Essay

On January 1,2011,Jeff Company acquired a 90% interest in Margaret Company for $198,000 cash.On January 1,2011,Margaret Company had the following assets and liabilities:
Push-down accounting is used for the acquisition.
Required:
1.Assume both companies use the entity theory.
a.Record the journal entry on Margaret's separate books on January 1,2011.
b.Record the journal entry on Jeff's separate books on January 1,2011.
2.Assume both companies use the parent company theory.
a.Record the journal entry on Margaret's separate books on January 1,2011.
b.Record the journal entry on Jeff's separate books on January 1,2011.

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Definitions:

Humanistic Perspective

A psychological approach that emphasizes personal worth, the centrality of human values, and the creative, active nature of human beings.

Archetypes

Universal, innate models or patterns that shape behaviors and structure narratives, found across cultures and stories.

Collective Unconscious

A concept introduced by Carl Jung, referring to the part of the unconscious mind that is derived from ancestral memory and experience and is common to all humankind.

Personal Unconscious

In Jung’s theory, the layer of the unconscious that contains all of the thoughts, perceptions, and experiences accessible to the conscious, as well as repressed memories, wishes, and impulses.