Use the Following Information to Answer the Question(s) Below

question 28

Essay

Use the following information to answer the question(s) below.
On January 1, 2014, Penelope Company acquired a 90% interest in Leah Company for $180,000 cash. On January 1, 2014, Leah Company had the following assets and liabilities:
Push-down accounting is used for the acquisition.
-Pascal Corporation paid $225,000 for a 70% interest in Sank Corporation on January 1, 2014. On that date, Sank's balance sheet accounts, at book value and fair value, were as follows:
Both companies use the parent company theory. Push-down accounting is used for the acquisition.
Required:
1. Prepare the journal entry on January 1, 2014 on Sank Corporation's books.
2. Prepare a balance sheet for Sank Corporation immediately after the acquisition on January 1, 2014.

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Definitions:

Multivalued Lookup Field

A type of database field that allows for the selection of multiple values from a list of predefined options, used in forms or tables.

Table Datasheet

A view in database applications that displays data in rows and columns, similar to a spreadsheet, allowing for data entry, editing, and browsing.

SQL View

A database object that is essentially a saved SQL query; it allows users to view the data in a specific way without altering the underlying tables.

Query

A request for data or information from a database, often written in a specific query language, that allows for retrieval, insertion, update, or deletion of data within a database.