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

question 30

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.
-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:

Authoritative Parents

A parenting style characterized by high responsiveness and high demands, striking a balance between strictness and warmth in child-rearing practices.

Adolescent's Friends

Peers during the teenage years who can significantly influence one’s behaviors, attitudes, and self-concept through social interactions and bonding.

Peer Pressure

Influence from members of one's peer group that encourages individuals to change their attitudes, values, or behaviors to conform to group norms.

Authoritative

Exerting or possessing authority, often characterized by leadership qualities, command, or the ability to influence and enforce obedience.