Balance sheet information for Pawn Company and its 90%-owned subsidiary, Sox Corporation, at December 31, 20X1, is summarized as follows: Pawn Sox Current assets-net $ 200,000 $ 50,000 Property, plant, and equipment-net 1,000,000 600,000 Investment in Sox 558,000 $1,758,000 $650,000 Current liabilities $ 100,000 $ 30,000 Capital stock 800,000 400,000 Retained earnings 858,000 220,000 $1,758,000 $650,000 Pawn acquired its interest in Sox for cash at book value several years ago when Sox's assets and liabilities were equal to their fair values. Consolidated total assets of Pawn and Sox, at December 31, 20X1, will be ____. a. $1,785,000 b. $1,850,000 c. $2,343,000 d. $2,408,000
|
|
Pawn |
Sox |
|
Current assets-net |
$ 200,000 |
$ 50,000 |
|
Property, plant, and equipment-net |
1,000,000 |
600,000 |
|
Investment in Sox |
558,000 |
|
|
|
$1,758,000 |
$650,000 |
|
|
|
|
|
Current liabilities |
$ 100,000 |
$ 30,000 |
|
Capital stock |
800,000 |
400,000 |
|
|
858,000 |
220,000 |
|
|
$1,758,000 |
$650,000 |
Pawn acquired its interest in Sox for
Consolidated total assets of Pawn and Sox, at December 31, 20X1, will be ____.
|
a. |
$1,785,000 |
|
b. |
$1,850,000 |
|
c. |
$2,343,000 |
|
d. |
$2,408,000 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
