Presented below are condensed balance sheets for the ASAP Company and its wholly owned subsidiary, BYOB Inc., at December 31, 1999 (dollars in millions):

ASAP Company BYOB Inc.
Current assets $ 30 $ 55 Noncurrent assets 210 95 Total$240 $150 Liabilities $110 $ 85 Shareholders’ equity 130 65 Total$240 $150 Required Explain how each of the following items would affect your preparation of a consolidated balance sheet for ASAP and BYOB:

a. The noncurrent assets of ASAP include its investment in BYOB at a value of $65 million.

b. The current assets of BYOB include an account receivable from ASAP of $9 million.

c. The noncurrent assets of BYOB include land purchased from ASAP for $25 million.The cost of the land to ASAP was $7 million.

d. Prepare a consolidated balance sheet for ASAP Company on December 31, 1999. P-968