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:

Labor Productivity

Labor Productivity measures the efficiency and effectiveness of workers in producing goods or services within a given time frame.

Productivity Growth

The increase in the efficiency of production in an economy, often resulting in more output for the same input.

Composition of Workforce

The makeup of employees in an organization or economy, including aspects such as age, gender, skill level, and job types.

Quality of Education

A measure of how well education systems meet the needs of students and society, often evaluated through factors like teaching quality, access to resources, and student outcomes.