The summarized balance sheets of ROSE N' Company and GARDEN Company as of December 31, 2021, are as follows: ROSE N' Company Balance Sheet December 31, 2021 Assets $2000000 Liabilities $220000 Capital stock 1000000 Retained earnings 780000 Total equities $2000000 GARDEN Company Balance Sheet December 31, 2021 Assets $1480000 Liabilities $330000 Capital stock 990000 Retained earnings 160000 Total equities $1480000 If ROSE N' Company acquired a 30% interest in GARDEN Company on December 31, 2021 for $350000 and the equity method of accounting for the investment were used, the amount of the debit to Equity Investments (GARDEN) would have been $444000. $297000. $345000. $350000.
The summarized balance sheets of ROSE N' Company and GARDEN Company as of December 31, 2021, are as follows: ROSE N' Company Balance Sheet December 31, 2021 Assets $2000000 Liabilities $220000 Capital stock 1000000 Retained earnings 780000 Total equities $2000000 GARDEN Company Balance Sheet December 31, 2021 Assets $1480000 Liabilities $330000 Capital stock 990000 Retained earnings 160000 Total equities $1480000 If ROSE N' Company acquired a 30% interest in GARDEN Company on December 31, 2021 for $350000 and the equity method of accounting for the investment were used, the amount of the debit to Equity Investments (GARDEN) would have been $444000. $297000. $345000. $350000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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#12
The summarized balance sheets of ROSE N' Company and GARDEN Company as of December 31, 2021, are as follows:
|
ROSE N' Company |
|
| Assets | $2000000 |
| Liabilities | $220000 |
| Capital stock | 1000000 |
| 780000 | |
| Total equities | $2000000 |
|
GARDEN Company |
|
| Assets | $1480000 |
| Liabilities | $330000 |
| Capital stock | 990000 |
| Retained earnings | 160000 |
| Total equities | $1480000 |
If ROSE N' Company acquired a 30% interest in GARDEN Company on December 31, 2021 for $350000 and the equity method of accounting for the investment were used, the amount of the debit to Equity Investments (GARDEN) would have been
$444000.
$297000.
$345000.
$350000.
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