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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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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?
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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