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

question 34

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.
-On January 1, 2014, Brody Company acquired an 80% interest in Kristin Company for $240,000 cash. On January 1, 2014, Kristin Company had the following assets and liabilities:
Push-down accounting is used for the acquisition. Both companies use the entity theory.
Required:
1. What is the goodwill associated with Kristin Company on January 1, 2014?
2. Prepare the journal entry(ies) on Kristin's books on January 1, 2014.
3. Prepare the journal entry(ies) on Brody's books on January 1, 2014.
4. Prepare the elimination entry(ies) on the consolidating working papers on January 1, 2014.

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Definitions:

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