Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date of acquisition, Scrub Company reported assets and liabilities with book values of $427,000 and $165,000, respectively, common stock outstanding of $85,000, and retained earnings of $177,000. The book values and fair values of Scrubs assets and liabilities were identical except for land, which had increased in value by $25,000, and inventories, which had decreased by $7,000. Required:
a. Prepare the consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $287,000.
b. Prepare the consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Mason acquired its ownership of Best for $262,000.

Power Corporation

a) Consolidation Entries:

Debit Assets $427,000

Debit Land $25,000

Debit Goodwill $7,000

Credit Inventories $7,000

Credit Liabilities $165,000

Credit Cash Account $287,000

To record the acquisition of Scrub.

b. Consolidation Entries:

Debit Assets $427,000

Debit Land $25,000

Credit Inventories $7,000

Credit Liabilities $165,000

Credit Cash Account $262,000

Credit Negative Goodwill $18,000

To record the acquisition of Scrub.

Explanation:

a) Data and Calculations:

Percentage ownership of Scrub by Power = 100%

Assets of Scrub =    $427,000

Liabilities of Scrub     165,000

Common stock           85,000

Retained earnings     177,000

Total Liab + Equity $427,000

On acquisition:

Assets revalued to         $445,000 ($427,000 + 25,000 - 7,000)

Liabilities                           165,000

Net fair value of assets $280,000

a) Purchase price          $287,000

Goodwill on acquisition    $7,000

b) Net fair value of assets $280,000

Purchase price                    262,000

Negative Goodwill arising   $18,000

c) In the first case, the acquisition transactions involve goodwill because Power Corporation pays a greater purchase price than the net fair value of Scrub Company's tangible assets. But in the second case, negative goodwill occurs because the value of the intangible assets (net fair value of assets exceeds the purchase price) must be recorded as a gain on Power Corporation's income statement.

answer: yo mama

explanation: yo mama

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are: