On January 1,2014,Jeff Company Acquired a 90% Interest in Margaret

question 17

Essay

On January 1,2014,Jeff Company acquired a 90% interest in Margaret Company for $198,000 cash.On January 1,2014,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 1,2014.
b.Record the journal entry on Jeff's separate books on January 1,2014.
2.Assume both companies use the parent company theory.
a.Record the journal entry on Margaret's separate books on January 1,2014.
b.Record the journal entry on Jeff's separate books on January 1,2014.

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Definitions:

Sural Region

Pertains to the calf area of the leg, where the sural nerve is also located, providing sensory information.

Calf

The back portion of the lower leg in humans, or a young bovine animal.

Pleural Cavity

The thin fluid-filled space between the two pulmonary pleurae of each lung.

Serous Membrane

A thin layer of tissue that lines certain internal cavities of the body, secreting a serous fluid to lubricate and reduce friction between internal organs.