Determining Balance Sheet Prior to Consolidation LO 8 On January 1, 2024, Pat Company purchased 90% of the outstanding common stock of Solo Company for $236,000 cash. The balance sheet for Pat Company just before the acquisition of Solo Company stock, along with the consolidated balance sheet prepared at the date of acquisition, follows.

One week before the acquisition, Pat Company had advanced $10,000 to Solo Company. Solo Company had not yet recorded the transaction on the date of acquisition. In addition, on the date of acquisition, Solo Company owed Pat Company $4,000 for purchases of merchandise on account. The merchandise had been sold to outside parties prior to the date of acquisition.

Required:
A. Determine the amount of cash that appeared on Solo Company’s balance sheet immediately prior to the acquisition of its stock by Pat Company.
B. Determine the amount of total stockholders’ equity on Solo Company’s separate balance sheet at the date of acquisition.
C. Determine the amount of total assets appearing on Solo Company’s separate balance sheet on the date of acquisition.

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Cash Accounts receivable Advances to Solo Company Inventory Plant and equipment Land Total Accounts payable Long-term liabilities Noncontrolling interest in subsidiary Common stock Other contributed capital Retained earnings Total Pat Company December 31, 2023 $ 540,000 272,000 10,000 376,000 622,000 350,000 $2,170,000 $ 280,000 520,000 890,000 300,000 180,000 $2,170,000 Consolidated January 1, 2024 $352,000 346,000 451,000 820,000 421,000 $2,390,000 $ 386,000 605,500 28,500 890,000 300,000 180,000 $2,390,000