(Solution) - On January 1 2012 Parker Company purchased 90 of the -(2025 Original AI-Free Solution)
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On January 1, 2012, Parker Company purchased 90% of the outstanding common stock of Sid Company for $180,000. At that time, Sid's stockholders' equity consisted of common stock, $120,000; other contributed capital, $20,000; and retained earnings, $25,000. Assume that any difference between book value of equity and the value implied by the purchase price is attributable to land. On December 31, 2012, the two companies' trial balances were as follows:
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A. Prepare a consolidated statements work paper on December 31, 2012.
B. Prepare a consolidated statements work paper on December 31, 2013, assuming trial balances for Parker and Sid on that date were:
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