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.

---

Definitions:

Linked Data

A method of publishing structured data so that it can be interlinked and become more useful through semantic queries.

Inability To Share

The restriction or limitation within a system, software, or platform that hampers the sharing of files, data, or resources among users or devices.

Add A Tab

Creating an additional segment or section within an application's user interface for organizing content or data.

Universal Windows App

An app designed to run across multiple Microsoft compatible devices, including PCs, tablets, smartphones, and Xbox, using a unified Windows platform.