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4 (Consolidation difference at acquisition date) Cheetah Corp. (or holding company) has an investment of $50 million in Zebra Corp (a subsidiary...
4 (Consolidation difference at acquisition date)
Cheetah Corp. (or holding company) has an investment of $50 million in Zebra Corp (a subsidiary located in Africa.
The investment is represented by $75 million of assets, and $25 million of liabilities.
Cheetah Corp. balance sheet is made of the following accounts:
Current assets: $20 million
Investment in Pomian Corp.: $60 million
Share capital: $100 million
Retained earnings: $50 million
L.T. liabilities: $ 35 million
Current liabilities: $15 million
Zebra Corp accounts are as follow:
PPE: $40 million
Current assets: $15 million
Share capital: $40 million
Retained Earnings: $ 10 million
L.T liabilities: $5 million
Task: Prepare the consolidated Statement of Financial Position for the Group composed of Cheetah and its sole subsidiary (Zebra corp.)
