Question
1.BeniCorp. acquired 100% of CarrCorp'soutstanding voting interests for $430,000 cash. Immediately before the acquisition, the balance sheets of the corporations reported the following: Beni Carr
1.BeniCorp. acquired 100% of CarrCorp'soutstanding voting interests for $430,000 cash. Immediately before the acquisition, the balance sheets of the corporations reported the following:
Beni
Carr
Assets
$2,000,000
$750,000
Liabilities
645,000
255,000
Common Stock
1,105,000
455,000
Retained earnings
250,000
40,000
Total liabilities & equity
$2,000,000
$750,000
At the acquisition date, the fair value of Carr's net assets was $26,000 more than their carrying amount. There was no bargain purchase gain recorded on the acquisition date.In the consolidated balance sheet prepared immediately after the acquisition, the equity total on the consolidated balance sheet is:
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