The Following Are Preliminary Financial Statements for Green Co

question 64

Essay

The following are preliminary financial statements for Green Co.and Gold Co.for the year ending December 31,2018 prior to Black's acquisition of Blue.

On December 31,2018 (subsequent to the preceding statements),Green exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Gold.Green's stock on that date has a fair value of $60 per share.Green was willing to issue 10,000 shares of stock because Gold's land was appraised at $204,000.Green also paid $14,000 to attorneys and accountants who assisted in creating this combination.
Required:
Assuming that these two companies retained their separate legal identities,prepare a consolidation worksheet as of December 31,2018 after the acquisition transaction is completed.

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Definitions:

Generalization

The process of applying the outcomes of specific instances to broader situations or populations, often seen in learning and reasoning.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.

Extinction

In behavioral psychology, the process through which the conditioned response is weakened when the conditioned stimulus is repeatedly presented without the unconditioned stimulus.

Conditioned Animal

An animal that has learned to respond in a specific way to a conditioned stimulus through the process of conditioning.