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.

Understand the impact of interest rate changes on mortgage scenarios.

Calculate tax equivalent yields for various investments.

Analyze and construct different types of investment portfolios and indices.

Understand the implications of corporate and individual investment returns after taxes.

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