Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On 1/1/2019,R CO acquired 80% of F Co common stock for $172,000 in cash At the acquisition date the book values and fair values of

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

On 1/1/2019,R CO acquired 80% of F Co common stock for $172,000 in cash At the acquisition date the book values and fair values of Fco assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 20% of the total book value of Fco ,The stockholders' equity accounts of the two companies at the acquisition date are: R F 250,000 100,000 common stock(5@par additional paid in capital 107,000 40,000 retained earning 175,000 75,000 Non controlling interest was assigned income of $5,500 in R consolidated income statement for 2019 Based on the preceding information, what will be the total stockholders' equity in the consolidated balance sheet as of January 1,2019? Select one: a. 575,000 b. 532,000 C. 618,000 ndo d. 790,000 All expenses paid related to shares in the date of combination reduce additional the Investor Select one: True O False P Co paid $140,000 for a 70% interest in S co.on 1/1 2019, when S had Capital Stock of $50,000 and Retained Earnings of $100,000. Fair values of net assets were the same as recorded book values. During 2019, had income of $20,000, declared dividends of $7,500,What will be the Balance of investment in S Co in P Co books On 31/12/ 2019 if it used equity methods?. Select one: a. 148,750 b. 152,500 C. 147.500 0. 150,000 On January 1, 2019, R Co acquired 75% of F Co common stock for $344,000 in cash, At the acquisition date the book values and fair values of F assets and liabilities were equal.and the fair value of the noncontrolling interest was equal to 25% of the total book value of F,The stockholders' equity accounts of the two companies at the acquisition date are: R F common stock(5@par 500,000 200,000 additional paid in capital 300,000 80,000 retained earning 350,000 150,000 Noncontrolling interest was assigned income of $11,000 in consolidated income statement for 2019 Based on the preceding information, what will be the amount of net income in 2019? reported by F CO Select one: a. 66,000 b. 36,000 C. 44,000 o d. 55,000

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions