Pob Corporation acquired an 80 percent interest in Sof Corporation on January 2, 2011, for $2,800,000. On

Question:

Pob acquired an 80 percent interest in Sof on January 2, 2011, for $2,800,000. On this date the capital stock and retained earnings of the two companies were as follows (in thousands):
Pob Sof
Capital stock .................. $7,200 ................. $2,000
Retained earnings .............. 3,200 ..................... 400
The assets and liabilities of Sof were stated at fair values equal to book values when Pob acquired its 80 percent interest. Pob uses the equity method to account for its investment in Sof.
Net income and dividends for 2011 for the affiliated companies were as follows:
Pob Sof
Net income ............................................... $1,200 ................... $360
Dividends declared ......................................... 720 .................... 200
Dividends payable December 31, 2011 .................. 360 .................... 100
REQUIRED
Calculate the amounts at which the following items should appear in the consolidated on December 31, 2011.
1. Capital stock
2.
3. Consolidated retained earnings
4. Noncontrolling interest
5. Dividends payable
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