Workpaper Elimination Entries:
Prepare in general journal form the workpaper entries to eliminate Prancer Company"s investment in Saltez Company in the preparation of a consolidated balance sheet at the date of acquisition for each of the following independent cases:
|
Percent of
|
Investment
|
Salta Company Equity Balances
|
|
|
Common
|
Other Contributed
|
Retained
|
|
Cash
|
Stock Owned
|
Cast
|
Stock
|
Capital
|
Earnings
|
|
a.
|
100%
|
$351,000
|
$160,000
|
$92,000
|
$43,000
|
|
b.
|
90
|
232,000
|
190,000
|
75,000
|
(29,000)
|
|
c.
|
80
|
159,000
|
180,000
|
40,000
|
(4,000)
|
Any difference between book value of net assets and the value implied by the purchase price relates to subsidiary property plant and equipment except for case (c). In case (c) assume that all book values and fair values are the same.