on december 30 20×5 the statements of financial position of the perk company and the 3387131

On December 30, 20X5, the statements of financial position of the Perk Company and the Scent Company are as follows: ? For both companies, the fair values of their identifiable assets and liabilities are equal to their carrying values except for the following fair values: ? The following cases are independent: 1. On December 31, 20X5, Perk Company purchases the net assets of Scent Company for $ 5.5 million in cash. Scent Company distributes the proceeds to its shareholders in return for their shares, cancels the shares, and ceases to exist as a separate legal entity. 2. On December 31, 20X5, Perk Company purchases 75% of the outstanding voting shares of Scent Company for $ 4.5 million in cash. Scent Company continues to operate as a separate legal entity. Required For each of the two independent cases, prepare a consolidated SFP for Perk Company at December 31, 20X5, subsequent to the business combination. For the second case, prepare a consolidated SFP using each of the following four methods. 1. Proportionate consolidation 2. Parent-company 3. Parent- company extension 4.Entity

 

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