Purpose: (L.O. 7) This exercise will review the content of a worksheet for a consolidated balance sheet when the cost of the acquiring company's investment exceeds the book value of the underlying net assets of the investee.
On January 1, 2014, Eisner Corporation acquires 100% of Green Inc., for $645,000 in cash. The condensed balance sheets of the two corporations immediately following the acquisition are as follows:
Prepare a worksheet for a consolidated balance sheet.