On June 10, 20X8, Game Corporation acquired 60 percent of Amber Company’s common stock.
On June 10, 20X8, Game Corporation acquired 60 percent of Amber Company’s common stock. The fair value of the noncontrolling interest was $25,600 on that date. Summarized balance sheet data for the two companies immediately after the stock purchase are as follows:Game Corp.Amber Company ItemBook ValueBook ValueFair Value Cash$35,800 $6,000 $6,000 Accounts Receivable47,000 11,000 11,000 Inventory 92,000 21,000 26,000 Buildings & Equipment (net)135,000 57,000 77,000 Investment in Amber Stock 38,400 Total$348,200 $95,000 $120,000 Accounts Payable$24,000 $3,000 3,000 Bonds Payable228,200 53,000 53,000 Common Stock38,000 11,000 Retained Earnings58,000 28,000 Total$348,200 $95,000 $56,000 Required:a.Record the consolidation entries required to prepare a consolidated balance sheet immediately after the purchase of Amber Company shares. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
