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Eliminations Entries: Broadway Corporation

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Please guide me I am getting myself confused. On December 31, 20x3, Broadway Corporation reported common stock outstanding of $200,000, additional paid-in-capital of $300,000, and retained earnings of $100,000. On January 1, 20x4, Johe Company acquired control of Broadway in a Business Combination.

a. Give the eliminating entry that would be needed to preparing a consolidated balance sheet immediately following the combination of Johe purchased all of Broadway's outstanding common stock for $600,000.

b. Give the eliminating entry that would be needed in preparing a consolidated balance sheet immediately following the combination if Johe purchased 90 percent of Broadway's outstanding common stock for $540,000.

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The solution examines elimination entries for Broadway corporation.

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