Power Company owns 90 percent of Pleasantdale Dairy’s stock. The balance sheets of the two companies immediately after the Pleasantdale acquisition
Power Company owns 90 percent of Pleasantdale Dairy’s stock. The balance sheets of the two companies immediately after the Pleasantdale acquisition showed the following amounts:
CompanyPleasantdale Dairy Assets Cash & Receivables$131,000 $87,000 Inventory 212,000 107,000 Land 85,000 43,000 Buildings & Equipment (net) 406,000 239,000 Investment in Pleasantdale Stock 279,000 Total Assets$1,113,000 $476,000 Liabilities & Stockholders’ Equity Current Payables$70,000 $26,000 Long-Term Liabilities 267,000 170,000 Common Stock 393,000 71,000 Retained Earnings 383,000 209,000 Total Liabilities & Stockholders’ Equity$1,113,000 $476,000
The fair value of the noncontrolling interest at the date of acquisition was determined to be $31,000. The full amount of the increase over book value is assigned to land held by Pleasantdale. At the date of acquisition, Pleasantdale owed Power $11,000 plus $1,300 accrued interest. Pleasantdale had recorded the accrued interest, but Power had not.
I need help ffiguring out the consolidation entry for Land? I don’t know what number to multiply by