Pudex acquired 100% of Sudex's outstanding common stock on 6/1/06 for $690,000 cash. Selected information for Sudex as of the acquisition date follows:
Required:
a. Prepare the entry to record the combination.
b. Prepare the entry or entries to use push-down accounting.
c. Prepare all entries to prepare consolidated financial statements as of 6/1/06.

Question

Pudex acquired 100% of Sudex's outstanding common stock on 6/1/06 for $690,000 cash. Selected information for Sudex as of the acquisition date follows:
  Required:
a. Prepare the entry to record the combination.
b. Prepare the entry or entries to use push-down accounting.
c. Prepare all entries to prepare consolidated financial statements as of 6/1/06.

Quizplus · Accepted Answer

The Answer of Pudex acquired 100% of Sudex's outstanding common stock on 6/1/06 for $690,000 cash. Selected information for Sudex as of the acquisition date follows:
  Required:
a. Prepare the entry to record the combination.
b. Prepare the entry or entries to use push-down accounting.
c. Prepare all entries to prepare consolidated financial statements as of 6/1/06.

Pudex Acquired 100% of Sudex's Outstanding Common Stock on 6/1/06