Question
n January 1, 2008, Wilhelm Corporation acquired 90 percent of Kaiser Company's voting stock, at underlying book value. The fair value of the noncontrolling interest
n January 1, 2008, Wilhelm Corporation acquired 90 percent of Kaiser Company's voting stock, at underlying book value. The fair value of the noncontrolling interest was equal to 10 percent of the book value of Kaiser at that date. Wilhelm uses the equity method in accounting for its ownership of Kaiser. On December 31, 2009, the trial balances of the two companies are as follows: Wilhelm corporation Kaiser company Item Debit Credit Debit Credit Current Assets 200,000 140,000 Depreciable Assets 350,000 250,000 Investment in Kaiser Company Stock 162,000 Depreciation Expense 27,000 10,000 Other Expense 95,000 60,000 Dividends Declared 20,000 10,000 Accumulated Depreciation 118,000 80,000 Current Liabilities 100,000 80,000 Long-Term Debt 100,000 50,000 Common Stock 100,000 50,000 Retained Earnings 150,000 100,000 Sales 250,000 110,000 Income from Subsidiary 36,000 Total 854,000 854,000 470,000 470,000 19. Based on the preceding information,
A.what amount would be reported as total assets in the consolidated balance sheet at December 31, 2009? A. $805,000 B. $712,000 C. $742,000 D. $1,102,000 20. Based on the preceding information,
B.what amount would be reported as total liabilities in the consolidated balance sheet at December 31, 2009? A. $330,000 B. $712,000 C. $318,000 D. $130,000
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