On 1/1/2019, P CO acquired 80% of S Co common stock for $172,000 in cash At the acquisition date the book values and fair values of S Co assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 20% of the total book value of S co, The stockholders' equity accounts of the two companies at the acquisition date are: common stock(5@par additional paid-in capital retained earning S 250,000 100,000 107,000 40,000 175,000 75,000 Non-controlling interest was assigned income of $5,500 in the consolidated income statement for 2019 Based on the preceding information, what will be the total stockholders' equity in the consolidated balance sheet as of January 1, 2019? Select one: P O a. 532,000 b. 575,000 c. 790,000 d. 618,000
On 1/1/2019, P CO acquired 80% of S Co common stock for $172,000 in cash At the acquisition date the book values and fair values of S Co assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 20% of the total book value of S co, The stockholders' equity accounts of the two companies at the acquisition date are: common stock(5@par additional paid-in capital retained earning S 250,000 100,000 107,000 40,000 175,000 75,000 Non-controlling interest was assigned income of $5,500 in the consolidated income statement for 2019 Based on the preceding information, what will be the total stockholders' equity in the consolidated balance sheet as of January 1, 2019? Select one: P O a. 532,000 b. 575,000 c. 790,000 d. 618,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:On 1/1/2019, P CO acquired 80% of S Co common stock for $172,000 in cash At the acquisition
date the book values and fair values of S Co assets and liabilities
were equal, and the fair value of the noncontrolling interest was equal to 20% of
the total book value of S co, The stockholders' equity accounts of the two companies at the
acquisition date are:
S
250,000
100,000
107,000
40,000
175,000
75,000
Non-controlling interest was assigned income of $5,500 in the consolidated income statement for
common stock(5@par
additional paid-in capital
retained earning
2019
Based on the preceding information, what will be the total stockholders' equity in the
consolidated balance sheet as of January 1, 2019?
Select one:
P
O
O
a. 532,000
b. 575,000
c. 790,000
d. 618,000
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