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On 1/1/2019 P Co acquired 75% of S Co's outstanding common stock for cash The fair value of the noncontrolling interest was equal to the proportionate share of the book value of S Co's net assets at the date of acquisition. Selected balance sheet data on January 1, 2019, are as follows P S total assets 252,000 108, 000 liabilities 74,000 36,000 common stock 60,000 30,000 retained earning 120,000 42,000 Based on the preceding information, what amount will P Company report as common stock in its consolidated balance sheet on 1/1/2019? Select one: a. 78, 000 b. 90,000 c. 123,000 d. 60, 000

On 1/1/2019 P Co acquired 75% of S Co's outstanding common stock for cash The fair value of the noncontrolling interest was equal to the proportionate share of the book value of S Co's net assets at the date of acquisition. Selected balance sheet data on January 1, 2019, are as follows P S total assets 252,000 108, 000 liabilities 74,000 36,000 common stock 60,000 30,000 retained earning 120,000 42,000 Based on the preceding information, what amount will P Company report as common stock in its consolidated balance sheet on 1/1/2019? Select one: a. 78, 000 b. 90,000 c. 123,000 d. 60, 000

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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On 1/1/2019 P Co acquired 75% of S Co's outstanding common stock for cash The fair value of the noncontrolling interest was equal to the proportionate share of the book value of S Co's net assets at the date of acquisition. Selected balance sheet data on January 1, 2019, are as follows P S total assets 252,000 108,000 liabilities 74,000 36,000 common stock 60,000 30,000 retained earning 120,000 42,000 Based on the preceding information, what amount will P Company report as common stock in its consolidated balance sheet on 1/1/2019? Select one: a. 78, 000 b. 90, 000 c. 123,000 d. 60, 000
Transcribed Image Text:On 1/1/2019 P Co acquired 75% of S Co's outstanding common stock for cash The fair value of the noncontrolling interest was equal to the proportionate share of the book value of S Co's net assets at the date of acquisition. Selected balance sheet data on January 1, 2019, are as follows P S total assets 252,000 108,000 liabilities 74,000 36,000 common stock 60,000 30,000 retained earning 120,000 42,000 Based on the preceding information, what amount will P Company report as common stock in its consolidated balance sheet on 1/1/2019? Select one: a. 78, 000 b. 90, 000 c. 123,000 d. 60, 000
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