2.99 See Answer

Question: On June 30, 2021, Plaster, Inc., paid $


On June 30, 2021, Plaster, Inc., paid $916,000 for 80 percent of Stucco Company’s outstanding stock. Plaster assessed the acquisition-date fair value of the 20 percent noncontrolling interest at $229,000. At acquisition date, Stucco reported the following book values for its assets and liabilities:



On June 30, 2021, Plaster, Inc., paid $-1

On June 30, Plaster allocated the excess acquisition-date fair value over book value to Stucco’s assets as follows:



On June 30, 2021, Plaster, Inc., paid $-2

At the end of 2021, the following comparative (2020 and 2021) balance sheets and consolidated income statement were available:



On June 30, 2021, Plaster, Inc., paid $-3




On June 30, 2021, Plaster, Inc., paid $-4

Additional Information for 2021
∙ On December 1, Stucco paid a $40,000 dividend. During the year, Plaster paid $100,000 in dividends.
∙ During the year, Plaster issued $800,000 in long-term debt at par.
∙ Plaster reported no asset purchases or dispositions other than the acquisition of Stucco.
Prepare a 2021 consolidated statement of cash flows for Plaster and Stucco. Use the indirect method of reporting cash flows from operating activities.

2.99

See Answer