Party Corporation Acquired an 80% Interest in Sang Corporation on January

question 37

Essay

Party Corporation acquired an 80% interest in Sang Corporation on January 1,2014 for $20,000.Balance sheet and fair value information on this date is summarized as follows:
Required:
1.Prepare an entry on the books of Sang Corporation to record the push-down adjustment under parent company theory.
2.Prepare an entry on the books of Sang Corporation to record a push-down adjustment under entity theory.

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Definitions:

Corporate Liability

The legal obligation of a corporation to pay for damages, fines, or penalties arising from its actions or those of its employees.

Sixth Amendment

An amendment to the U.S. Constitution that guarantees rights to a fair and speedy trial, the right to a lawyer, and the right to an impartial jury.

Speedy Trial

A legal right guaranteeing individuals accused of crimes to be tried promptly, aimed at preventing undue and lengthy pretrial incarceration.

Impartial Jury

A jury that is unbiased and fair, selected to review evidence in a legal case and make a decision without prejudice.