Pascal Corporation Paid $225,000 for a 70% Interest in Sank

question 12

Essay

Pascal Corporation paid $225,000 for a 70% interest in Sank Corporation on January 1, 2011.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, 2011 on Sank Corporation's books.
2.Prepare a balance sheet for Sank Corporation immediately after the acquisition on January 1, 2011.

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Definitions:

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The tendency for individuals to like others who express liking towards them, playing a significant role in the development of friendships and romantic relationships.

Different

Not the same as another or each other; unlike in nature, form, or quality.

Rich

Having an abundance of wealth, resources, or valuable possessions.

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A cognitive bias in which an observer's overall impression of a person, company, brand, or product influences the observer's feelings and thoughts about that entity's character or properties.