Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. On January 2, 20X2, Kentucky Company acquired 70% of Bluegrass Corporation's common stock for $420,000 cash. At the acquisition date, the book values and

image text in transcribed

6. On January 2, 20X2, Kentucky Company acquired 70% of Bluegrass Corporation's common stock for $420,000 cash. At the acquisition date, the book values and fair values of Bluegrass' assets and liabilities were equal. The stockholders' equity accounts of the two companies at the acquisition date are as follows Kentuck Bluegrass Common Stock ($10 par value) $600,0 Additional Paid-In Capital Retained Earnings Total Stockholders' Equity 450,000 50,000 250,000 200,000 $1,300,000 $600,000 Noncontrolling interest was assigned income of $15,000 in Kentucky's consolidated income statement for 20X2 Based on the preceding information, what is the total stockholders' equity in the consolidated balance sheet as of January 2, 20x2? A) $1,120,000 B) $1,300,000 o $1,480,000 D) $1,900,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Define subconscious/implicit bias AppendixLO1

Answered: 1 week ago