Lea Company acquired all of Tenzing Corporation’s stock on January 1, 20X6 for $150,000 cash. On December 31, 20X8, the trial balances of the two companies were as follows:
|Lea company||Tenzing Corp.|
|Buildings and Equipment||300,000||200,000|
|Investment in Tenzing Corporation||180,000|
|Cost of Services Provided||140,000||75,000|
|Income from Subsidiary||45,000|
Tenzing Corporation reported retained earnings of $75,000 at the date of acquisition. The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of five years from the date of acquisition. At December 31, 20X8, Tenzing owed Lea $4,000 for services provided.
4. Based on the preceding information, all of the following are consolidating entries required on December 31, 20X8, to prepare consolidated financial statements, except:
|Income from Tenzing Corp.||50,000|
|Investment in Tenzing Corp.||170,000|
|Income from Tenzing Corp.||5,000|
|D)||Buildings and Equipment||20,000|
|Investment in Tenzing Corp.||10,000|
5. Based on the preceding information, what amount will be reported as total assets in the consolidated balance sheet for 20X8?
6. Based on the preceding information, what amount will be reported for total accounts payable in the consolidated balance sheet for the year 20X8?