Early in 20×1, Carter Corporation acquired Diroff Corporation. Diroff continued to operate as a…

Early in 20×1, Carter Corporation acquired Diroff Corporation. Diroff continued to operate as a Carter subsidiary. At the end of 20×1, the president of Carter asked the company s public accounting firm to prepare consolidated financial statements. Data from the separate financial statements of the two corporations are given in Exhibit 1. (For the purpose of this case, these data have been condensed and rounded.) Questions 1. Reconstruct the consolidated financial statements that the accountant originally prepared. 2. Prepare revised consolidated financial statements based on the information that the accountant learned in his first conversation with the president.

 

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