On January 1, 2022, P Co acquired 75% of S Co common stock for $344,000 in cash, At the acquisition date the book values and fair values of S assets and liabilities were equal. and the fair value of the noncontrolling interest was equal to 25% of the total book value of S, The stockholders' equity accounts of the two companies at the acquisition date are: P S common stock(5@par 200,000 additional paid-in capital 80,000 retained earning 150,000 Noncontrolling interest was assigned income of $11,000 in the consolidated income statement for 2022 500,000 Select one: a. 55,000 b. 44,000 c. 66,000 d. 36,000 300,000 Based on the preceding information, what will be the amount of net income reported by S Co in 2022? 350,000
On January 1, 2022, P Co acquired 75% of S Co common stock for $344,000 in cash, At the acquisition date the book values and fair values of S assets and liabilities were equal. and the fair value of the noncontrolling interest was equal to 25% of the total book value of S, The stockholders' equity accounts of the two companies at the acquisition date are: P S common stock(5@par 200,000 additional paid-in capital 80,000 retained earning 150,000 Noncontrolling interest was assigned income of $11,000 in the consolidated income statement for 2022 500,000 Select one: a. 55,000 b. 44,000 c. 66,000 d. 36,000 300,000 Based on the preceding information, what will be the amount of net income reported by S Co in 2022? 350,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2022, P Co acquired 75% of S Co
common stock for $344,000 in cash, At the acquisition
date the book values and fair values of S assets and
liabilities were equal. and the fair value of the
noncontrolling interest was equal to 25% of the total
book value of S, The stockholders' equity accounts of
the two companies at the acquisition date are:
P
S
common stock(5@par
200,000
additional paid-in capital
80,000
retained earning
150,000
Noncontrolling interest was assigned income of
$11,000 in the consolidated income statement for
2022
Select one:
500,000
O
Based on the preceding information, what will be the
amount of net income reported by S Co in 2022?
a. 55,000
b. 44,000
c. 66,000
d. 36,000
300,000
350,000
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