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uary 1, ommon stock for $344,000 in ate the book values and fair iabilities were equal. and the oncontrolling interest was eq ook value of S, The stockhold

uary 1, ommon stock for $344,000 in ate the book values and fair iabilities were equal. and the oncontrolling interest was eq ook value of S, The stockhold

FINANCIAL ACCOUNTING
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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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
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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