Lea Company Acquired All of Tenzing Corporation's Stock on January

question 27

Essay

Lea Company acquired all of Tenzing Corporation's stock on January 1,20X6 for $150,000 cash.On December 31,20X7,the balance sheets of the two companies showed the following amounts:
Tenzing Corporation reported retained earnings of $75,000 at the date of acquisition.The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of five years from the date of acquisition.
Required:
1)Give the appropriate eliminating entry or entries needed to prepare a consolidated balance sheet as of December 31,20X7.
2)Prepare a consolidated balance sheet worksheet as of December 31,20X7.

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Definitions:

GDP Declines

A decrease in the gross domestic product, indicating a contraction in a country's economic activity over a specific period.

Indirect Competition

Competition among businesses that aren't direct rivals but offer substitute products or services.

Alternate Solutions

Approaches or methods that differ from the original way to solve a problem or achieve a goal.

Yoplait

A global brand of yogurt produced by Yoplait, known for its wide range of flavoured dairy products.