Essay
On December 31,2013,Pat Corporation has the following information available: 
On December 31,2013,Anne Corporation buys an 80% interest in Pat Corporation for $160,000.On December 31,2013,the fair value of Pat's assets and liabilities are equal to the respective book values.Use four decimal places for the ownership percentage.
Required:
1.On January 1,2014,Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $20 per share.Prepare the journal entry for Anne Corporation on January 1,2014.
2.On January 1,2014 Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $35 per share.Prepare the journal entry for Anne Corporation on January 1,2014.
3.On January 1,2014,Pat Corporation sells 2,000 additional shares of common stock to noncontrolling stockholders at $15 per share.Prepare the journal entry for Anne Corporation on January 1,2014.
Correct Answer:
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Correct Answer:
Verified
No entry is needed.
Requir...
View Answer
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