On December 31, 2013, Pat Corporation Has the Following Information

question 30

Essay

On December 31, 2013, Pat Corporation has the following information available:
On December 31, 2013, Anne Corporation buys an 80% interest in Pat Corporation for $160,000. On December 31, 2013, the fair value of Pat's assets and liabilities are equal to the respective book values. Use four decimal places for the ownership percentage.
Required:
1. On January 1, 2014, Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $20 per share. Prepare the journal entry for Anne Corporation on January 1, 2014.
2. On January 1, 2014 Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $35 per share. Prepare the journal entry for Anne Corporation on January 1, 2014.
3. On January 1, 2014, Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $15 per share. Prepare the journal entry for Anne Corporation on January 1, 2014.

---

Definitions:

Formal Hierarchy

The structured organizational layout that defines the levels of authority, responsibility, and communication within an organization.

Team-Based Organizational Structures

Organizational designs that focus on grouping employees into teams to accomplish tasks and achieve objectives.

Functional Structures

An organizational format that divides the company based on specialized functional areas, such as marketing, finance, and engineering.

Flexibility

The ability to adapt to changes, challenges, or new circumstances quickly and efficiently in both personal and professional contexts.