Determining Subsidiary’s Equity from Consolidated Data Popp Inc. acquired 70% of Soda Inc.’s outstanding common stock. Popp’s separate balance sheet immediately after the acquisition and the consolidated balance sheet (under the parent company concept) follow:

Current assets .

Investment in Soda (cost) . . .

Goodwill .

Fixed assets (net) .

Total Assets .

Current liabilities .

Noncontrolling interest .

Capital stock .

Retained earnings .

Total Liabilities and Equity Popp Consolidated

$101,000 $163,000 105,000 —

—

270,000 370,000 7,000

$476,000 $540,000

$ 15,000 $ 46,000 — 33,000 350,000 350,000 111,000 111,000

$476,000 $540,000 Of the excess payment for the investment in Soda, $21,000 was attributed to undervaluation of its fixed assets; the balance was attributed to goodwill. Soda’s no par Common Stock account had a $50,000 balance at the acquisition date.

Required 1. Calculate the total stockholders’ equity of the subsidiary when it was acquired.
2. Prepare a conceptual analysis of the Investment account at the acquisition date.
Problems for 100%-Owned Subsidiaries