Lea Company acquired all of Tenzing Corporation's stock on January 1,20X6 for $150,000 cash.On December 31,20X7,the balance sheets of the two companies showed the following amounts:
Tenzing Corporation reported retained earnings of $75,000 at the date of acquisition.The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of five years from the date of acquisition.
Required:
1)Give the appropriate consolidating entry or entries needed to prepare a consolidated balance sheet as of December 31,20X7.
2)Prepare a consolidated balance sheet worksheet as of December 31,20X7.

Problem 65 (continued):

Question

Lea Company acquired all of Tenzing Corporation's stock on January 1,20X6 for $150,000 cash.On December 31,20X7,the balance sheets of the two companies showed the following amounts:
Tenzing Corporation reported retained earnings of $75,000 at the date of acquisition.The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of five years from the date of acquisition.
Required:
1)Give the appropriate consolidating entry or entries needed to prepare a consolidated balance sheet as of December 31,20X7.
2)Prepare a consolidated balance sheet worksheet as of December 31,20X7.
  
Problem 65 (continued):

Quizplus · Accepted Answer

The Answer of Lea Company acquired all of Tenzing Corporation's stock on January 1,20X6 for $150,000 cash.On December 31,20X7,the balance sheets of the two companies showed the following amounts:
Tenzing Corporation reported retained earnings of $75,000 at the date of acquisition.The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of five years from the date of acquisition.
Required:
1)Give the appropriate consolidating entry or entries needed to prepare a consolidated balance sheet as of December 31,20X7.
2)Prepare a consolidated balance sheet worksheet as of December 31,20X7.
  
Problem 65 (continued):

Lea Company Acquired All of Tenzing Corporation's Stock on January