On August 1, 2016, Post Inc acquired 100% of the stock of Stone Company. At the time of the purchase, Post and Stone had Retained Earnings of $180,000 and $90,000 respectively. At the end of the year on December 31, 2016, Post and Stone had Retained Earnings of $216,000 and $108,000 respectively. When Post's December 31, 2016 consolidated balance sheet was prepared, what retained earnings balance should have been included on that balance sheet? $234,000. $108,000. $216,000. $324,000.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On August 1, 2016, Post Inc acquired 100%
of the stock of Stone Company. At the time
of the purchase, Post and Stone had
Retained Earnings of $180,000 and
$90,000 respectively. At the end of the
year on December 31, 2016, Post and
Stone had Retained Earnings of $216,000
and $108,000 respectively. When Post's
December 31, 2016 consolidated balance
sheet was prepared, what retained
earnings balance should have been
included on that balance sheet?
$234,000.
$108,000.
$216,000.
$324,000.
Transcribed Image Text:On August 1, 2016, Post Inc acquired 100% of the stock of Stone Company. At the time of the purchase, Post and Stone had Retained Earnings of $180,000 and $90,000 respectively. At the end of the year on December 31, 2016, Post and Stone had Retained Earnings of $216,000 and $108,000 respectively. When Post's December 31, 2016 consolidated balance sheet was prepared, what retained earnings balance should have been included on that balance sheet? $234,000. $108,000. $216,000. $324,000.
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