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
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdd330162-40ad-4fed-af0f-2fb051ea4dc7%2Fd1e27667-7e0f-4084-944f-7c4f60874b9a%2F89qjfd8_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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