On January 4, 2010, Pronti Company acquired all of the net assets of Scott Company for $124,000 cash. The two companies merged with Pronti Company surviving. The balance sheets for each company prior to the merger follow.Required:1. How much goodwill was involved in this merger? Show computations.2. Record the merger by Pronti Company on January 4, 2010.3.
Prepare a consolidated balance sheet immediately after the acquisition.
On January 2, Leonberger Company acquired 30% of the outstanding stock of ARO Company for $300,000. For the year ended December 31, ARO Company earned income of $60,000 and paid dividends of $15,000.
Prepare the entries for Leonberger Company for the purchase of the stock, the share of ARO income, and the dividends received from ARO Company.
On January 1 Royal Company purchased a 25% equity in Connors Ltd, for £180,000. At December 31 Connors declared and paid a £60,000 cash dividend and reported net income of £200,000.
(a) Journalize the transactions.
(b) Determine the amount to be reported as an investment in Connors at December 31.
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