On January 1, 2018, Pare Company acquired 75 percent of Kidd Company's common stock at an amount equal to its underlying book value Selected balance sheet data at December 31, 2018, are as follows: Pare Company Kidd Company Total Assets $420,000 $180,000 Liabilities $120,000 $ 60,000 Common Stock 100,000 50,000 Retained Earnings 200,000 70,000 In consolidated balance sheet at December 31, 2018, what amount should Pare report as common stock ? Select one: a. 137,500 b. 50,000 C. 100,000 d. 150,000

On January 1, 2018, Pare Company acquired 75 percent of Kidd Company's common stock at an amount equal to its underlying book value Selected balance sheet data at December 31, 2018, are as follows: Pare Company Kidd Company Total Assets $420,000 $180,000 Liabilities $120,000 $ 60,000 Common Stock 100,000 50,000 Retained Earnings 200,000 70,000 In consolidated balance sheet at December 31, 2018, what amount should Pare report as common stock ? Select one: a. 137,500 b. 50,000 C. 100,000 d. 150,000

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Description: On January 1, 2018, Pare Company acquired 75 percent of Kidd Company's common stock at anamount equal to its underlying book valueSelected balance sheet data at Decenmber 31, 2018, are as follows:Pare CompanyKidd CompanyTotal Assets$420,000$180,000L

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

On January 1, 2018, Pare Company acquired 75 percent of Kidd Company's common stock at an
amount equal to its underlying book value
Selected balance sheet data at Decenmber 31, 2018, are as follows:
Pare Company
Kidd Company
Total Assets
$420,000
$180,000
Liabilities
$120,000
$ 60,000
Common Stock
100,000
50,000
Retained Earnings
200,000
70,000
In consolidated balance sheet at December 31, 2018, what amount should Pare report
as common stock ?
Select one:
a. 137,500
b. 50,000
c. 100,000
d. 150,000

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