a. In its December 31, 2020 consolidated statement of retained earnings, what amount should Pare report as dividends paid? b. In Pare's December 31, 2020 consolidated balance sheet, what amount should be reported as minority interest in net assets?
a. In its December 31, 2020 consolidated statement of retained earnings, what amount should Pare report as dividends paid? b. In Pare's December 31, 2020 consolidated balance sheet, what amount should be reported as minority interest in net assets?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:4. On January 2, 2020, Pare Co. purchased 75% of Kidd Co.'s outstanding common stock.
Selected balance sheet data at December 31,2020 is as follows:
Pare
Kidd
Total assets
420,000
180,000
Liabilities
120,000
60,000
Common stock
100,000
50,000
Retained earnings
200,000
70,000
Total
420,000
180,000
During 2009, Pare and Kidd paid cash dividends of P25,000 and P5,000, respectively, to their
stockholders. There were no other intercompany transactions.
a. In its December 31, 2020 consolidated statement of retained earnings, what amount
should Pare report as dividends paid?
b. In Pare's December 31, 2020 consolidated balance sheet, what amount should be
reported as minority interest in net assets?
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