What amount of consolidated retained earnings will be reported? a. $547,500 b. $397,500 c. $347,500 d. $257,500
Question:
What amount of consolidated retained earnings will be reported?
a. $547,500
b. $397,500
c. $347,500
d. $257,500
Pocket Corporation acquired 100 percent of Strap Corporation’s common stock on December 31, 20X2. Balance sheet data for the two companies immediately following the acquisition follow:
At the date of the business combination, the book values of Strap’s net assets and liabilities approximated fair value except for inventory, which had a fair value of $85,000, and land, which had a fair value of $45,000.
Required
Indicate the appropriate total that should appear in the consolidated balance sheet prepared immediately after the business combination.
Step by Step Answer:
Advanced Financial Accounting
ISBN: 9781260165111
12th Edition
Authors: Theodore Christensen, David Cottrell, Cassy Budd