Text: Pop Corp. and Son, Inc.
should be S320,500.
Son, Inc. reported net income of $204,000 and declared dividends of $52,000 for the year ended December 31, 20X2. The financial statements of Pop Corp. and Son, Inc. for the year ended December 31, 20X3 are provided on the accompanying consolidated financial statement workpaper. Assume no stock transactions for either company since the date of the business combination.
INSTRUCTIONS:
1. Prepare the differential schedule for Pop's acquisition of Son at December 31, 20X1, including the amortization amounts for 20X2 and 20X3.
2. Prepare the consolidation entries in journal entry (debit and credit format) as of December 31, 20X2.
3. Complete the consolidation workpaper in Excel as of December 31, 20X3.