Mr. and Mrs. Tan own 100% of the common stock of ABC Company and 90% of the common stock of XYZ Company. ABC previously paid P4,000 for the remaining 10% interest in XYZ. The condensed December 31, year 1 balance sheets of ABC (Col 1) and XYZ (Col 2) are as follows.Assets600,00060,000Liab200,00030,000Common Stock100,00020,000Retained Earnings300,00010,000 600,00060,000In a combined balance sheet of the two corporations at December 31, year 1, what amount should be reported as total stockholders' equity?The answer is 426,000 can you show me how it was solved?

Answer Stock holders equity = total assets - total liabilities

Answered: In a combined balance sheet of the two…

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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Mr. and Mrs. Tan own 100% of the common stock of ABC Company and 90% of the common stock of XYZ Company. ABC previously paid P4,000 for the remaining 10% interest in XYZ. The condensed December 31, year 1 balance sheets of ABC (Col 1) and XYZ (Col 2) are as follows.

Assets	600,000	60,000
Liab	200,000	30,000
Common Stock	100,000	20,000
Retained Earnings	300,000	10,000
	600,000	60,000

In a combined balance sheet of the two corporations at December 31, year 1, what amount should be reported as total stockholders' equity?

The answer is 426,000 can you show me how it was solved?

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