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6) Partridge Corporation purchased an 80% interest in Sandy Corporation

Question : 6) Partridge Corporation purchased an 80% interest in Sandy Corporation : 1811086

6) Partridge Corporation purchased an 80% interest in Sandy Corporation for $840,000 on January 1, 2014. Sandy's balance sheet book values and accompanying fair values on this date are shown below.

Parent

Entity Company

TheoryTheory

Push-Push-

Down Down

BookFairBalanceBalance

  Value     Value     Sheet       Sheet

Cash$30,000$30,000________________

Receivables200,000200,000________________

Inventory300,000360,000________________

Land50,00090,000________________

Plant assets-net250,000300,000________________

Total Assets$830,000$980,000________________

Current liabilities$180,000$180,000________________

Other liabilities120,000100,000________________

Common Stock400,000________________

Retained Earnings130,000________________________

Total Liab. & Equity$830,000________________________

Required:

Complete the push-down columns of Sandy Corporation's restructured balance sheet using entity theory and parent company theory.

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