On January 1, 2021, the Consolidated Company purchased 100% of the common stock Avergy Industries for $720,000. On that date, Avergy had a common stock of $100,000 and retained earnings of $420,000. Equipment and land were each undervalued by $50,000 on Avergy's books. There was a $40,000 overvaluation of Bonds Payable, as well a $60,000 undervaluation of inventory. The consolidation entries necessary for date of acquisition balance sheet include all of the following except:
a. Bonds Payable credit, $40,000
b. Land debit, $50,000
c. Equipment debit, $50,000
d. Inventory debit, $60,000
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Home » Business » On January 1, 2021, the Consolidated Company purchased 100% of the common stock Avergy Industries for $720,000. On that date, Avergy had a common stock of $100,000 and retained earnings of $420,000.