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Based on the preceding information, what amount of stockholders' equity was reported in the consolidated balance sheet immediately after the acquisition?

Based on the preceding information, what amount of stockholders' equity was reported in the consolidated balance sheet immediately after the acquisition?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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P Co acquired 100% of the voting common shares of S Co, by issuing bonds with a par value and fair value of $150,000. Immediately before the acquisition P reported total assets of $250,000, liabilities of $140,000, and stockholders' equity of $110,000. At that date, S reported total assets of $200,000, liabilities of $125,000, and stockholders' equity of $75,000 Based on the preceding information, what amount of stockholders' equity was reported in the consolidated balance sheet immediately after the acquisition? Select one: a. 175,000 b. 75,000 c. 110,000 d. 185,000
Transcribed Image Text:P Co acquired 100% of the voting common shares of S Co, by issuing bonds with a par value and fair value of $150,000. Immediately before the acquisition P reported total assets of $250,000, liabilities of $140,000, and stockholders' equity of $110,000. At that date, S reported total assets of $200,000, liabilities of $125,000, and stockholders' equity of $75,000 Based on the preceding information, what amount of stockholders' equity was reported in the consolidated balance sheet immediately after the acquisition? Select one: a. 175,000 b. 75,000 c. 110,000 d. 185,000
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