The Following Are Preliminary Financial Statements for Black Co

question 114

Essay

The following are preliminary financial statements for Black Co. and Blue Co. for the year ending December 31, 20X1 prior to Black's acquisition of Blue. On December 31, 20X1 (subsequent to the preceding statements), Black exchanged 10,000 shares of its $10 par value common stock for all of the outstanding shares of Blue. Black's stock on that date has a fair value of $60 per share. Black was willing to issue 10,000 shares of stock because Blue's land was appraised at $204,000. Black also paid $14,000 to several 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, 20X1 after the acquisition transaction is completed.

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Definitions:

Tobacco Use

The act of smoking or ingesting tobacco products, which is a major risk factor for various diseases.

Preventable Cause

A preventable cause refers to a factor or condition that can be avoided to prevent a disease, accident, or other undesirable outcomes.

Disease

A condition that disrupts normal physiological functions, often characterized by specific signs and symptoms, and can be caused by factors such as pathogens, genetic mutations, and environmental stress.

Swim Bladders

Air-filled sacs in some fish that help control buoyancy and maintain stability in the water.