Question
In 2012, Cassie Corp. purchased 100% of the common stock of Suzy Systems for a total purchase price of $8,573 million. On Cassies unconsolidated accounts,
In 2012, Cassie Corp. purchased 100% of the common stock of Suzy Systems for a total purchase price of $8,573 million. On Cassies unconsolidated accounts, it uses the equity method to account for Suzy Systems. For public disclosure, Cassie Corp. consolidates the accounts of Suzy Systems. Which of the following is true?
1) The consolidated shareholders equity exceeds the unconsolidated shareholders equity by $8,573 million. | ||
2) The consolidated total assets are greater than the unconsolidated total assets by $8,573 million. | ||
3) Net income is the same on the consolidated and unconsolidated financial statements. | ||
4) The consolidated net income is greater than the unconsolidated net income. | ||
5) None of the above |
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