On January 1, 2019, Jersey Company acquired all of the
outstanding stock of State Co. by paying $50,000 in cash and
issuing $100,000 in long term debt. State Co. maintained separate
incorporation and immediately upon this acquisition became a wholly
owned subsidiary of Jersey Company. No allocation to goodwill or
other specific account was made. Assume the equity method is
applied. On January 1, 2019 (immediately prior to the acquisition)
the balance sheet account balances for Jersey Company and State Co.
were as follows:
