P Co paid $140,000 for 70% interest in S CO. on 1/1/2019, when S had Capital Stock of $50,000 and Retained Earnings of $100,000. Fair values of net assets were the same as recorded book values. During 2019, S had income of $20,000, declared dividends of $7,500, On 31/12/2019, the P CO financial statements will show income from subsidiary for 2019 Amount? Select one: a. 12,500 b. 5, 250 c. 20,000 d. 14,000

P Co paid $140,000 for 70% interest in S CO. on 1/1/2019, when S had Capital Stock of $50,000 and Retained Earnings of $100,000. Fair values of net assets were the same as recorded book values. During 2019, S had income of $20,000, declared dividends of $7,500, On 31/12/2019, the P CO financial statements will show income from subsidiary for 2019 Amount? Select one: a. 12,500 b. 5, 250 c. 20,000 d. 14,000

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Description: P Co paid $140,000 for 70% interest in S CO.on 1/1/2019, when S had Capital Stock of $50,000 and Retained Earningsof $100,000. Fair values of net assets were the same as recorded book values. During 2019, S had income of $20,000,declared dividends o

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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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P Co paid $140,000 for 70% interest in S CO.on 1/1/2019, when S had Capital Stock of $50,000 and Retained Earnings
of $100,000. Fair values of net assets were the same as recorded book values. During 2019, S had income of $20,000,
declared dividends of $7,500, On 31/12/2019, the P CO financial statements will show income from subsidiary for 2019
Amount? Select one: a. 12,500 b. 5, 250 c. 20, 000 d. 14,000

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