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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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