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question autumn corporation purchased 80 of the stock in fall corporation on january 4281070

Question

Autumn Corporation purchased 80% of the stock in Fall Corporation on January 1, 2015, for $360,000. On that date, the fair value of the noncontrolling interest was $90,000. The book value and fair value information for Fall Corporation on 1/1/15 is as follows:

Fall Corporation reported the following year-end information in 2015:

Prepare the journal entry for Autumn Corporation on 1/1/2015:

 

 

Book Value

Fair Value

Cash

 

            12,000

         12,000

Accounts Receivable

            30,000

         30,000

Inventory

 

            70,000

         75,000

Land

 

            50,000

         65,000

PP&E

 

         470,000

       300,000

Accum. Depreciation

       (235,000)

 

 

 

 

 

Accounts Payable

            32,000

         32,000

Common Stock

         200,000

 

Retained Earnings

         165,000

 

 

 

         460,000

 

       

 

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