Question: On January 1, 2012, Staheli, Inc. acquired 100 percent of the common stock of Drake Company for S760,000 in cash and other fair-value consideration. Drake Company fair value was allocated among its net assets as follows:
Prepare a brief explanation, including evidence, of which accounting method is being used by the parent company. Explain the calculation to obtain the *C entry 2)
Using Excel, prepare a worksheet to compute the consolidated balances for Staheli & Drake.