Poyco acquired 100% of Soyco's outstanding common stock on 1/1/06 for $400,000 cash. Selected information for Soyco as of 1/1/06 follows:
^aNet of accumulated depreciation of $300,000.
Assume that Poyco instructed Soyco to use push-down acounting.
Required:
a. Prepare the entry to record the combination.
b. Prepare the entry or entries to apply push-down accounting.
c. Prepare all consolidation entries as of 1/1/06.

Question

Poyco acquired 100% of Soyco's outstanding common stock on 1/1/06 for $400,000 cash. Selected information for Soyco as of 1/1/06 follows:

^aNet of accumulated depreciation of $300,000.
Assume that Poyco instructed Soyco to use push-down acounting.
Required:
a. Prepare the entry to record the combination.
b. Prepare the entry or entries to apply push-down accounting.
c. Prepare all consolidation entries as of 1/1/06.

Quizplus · Accepted Answer

The Answer of Poyco acquired 100% of Soyco's outstanding common stock on 1/1/06 for $400,000 cash. Selected information for Soyco as of 1/1/06 follows: ^aNet of accumulated depreciation of $300,000. Assume that Poyco instructed Soyco to use push-down acounting. Required: a. Prepare the entry to record the combination. b. Prepare the entry or entries to apply push-down accounting. c. Prepare all consolidation entries as of 1/1/06.

Poyco Acquired 100% of Soyco's Outstanding Common Stock on 1/1/06