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.   The consolidated balance sheet of Pawn and Sox at December 31, 20X1 will show a. Investment in Sioux, $558,000. b. Capital stock, $800,000. c. Retained earnings, $1,078,000. d. Noncontrolling interest, $65,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.

 

The consolidated balance sheet of Pawn and Sox at December 31, 20X1 will show

a.

Investment in Sioux, $558,000.

b.

Capital stock, $800,000.

c.

Retained earnings, $1,078,000.

d.

Noncontrolling interest, $65,000.

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