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Company P purchased 70% stock in Company S on Jan 1, 20X1 for $70,000 cash. Just before acquisition, the cash balance of P was $120,000

Company P purchased 70% stock in Company S on Jan 1, 20X1 for $70,000 cash. Just before acquisition, the cash balance of P was $120,000 and the cash balance of Company S was $40,000.

In the consolidated balance sheet after acquisition, the cash balance will be reported at

$50,000

$160,000

$90,000

$110,000

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