P Company Acquired 54,000 Shares of the Common Stock of S

question 35

Essay

P Company acquired 54,000 shares of the common stock of S Company on January 1,2016,for $950,000 cash.The stockholders' equity section of S Company's balance sheet on that date was as follows:
On the date of acquisition,S Company owed P Company $10,000 on open account.
Required:
Present,in general journal form,the elimination entries for the preparation of a consolidated balance sheet workpaper on January 1,2016.The difference between the value implied by the purchase price of the investment and the book value of the net assets acquired relates to subsidiary land.

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Definitions:

Positive Toward

Exhibiting a favorable or optimistic attitude or feeling towards something or someone.

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Self-Censorship

The act of censoring or classifying one's own discourse, often out of fear of social, economic, or legal repercussions.

Vulnerability

The quality or state of being exposed to the possibility of being attacked or harmed, either physically or emotionally.