Question
On 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
On 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, 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, 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
21.Based on the preceding information, what amount would be reported as retained earnings in the consolidated balance sheet prepared at December 31, 2009?
A. 314,000 B. 294,000 C. 150,000 D. 424,000
22. Based on the preceding information, what amount would be reported as noncontrolling interest in the consolidated balance sheet at December 31, 2009?
A. $27,000 B. $4,000 C. $15,000 D. $18,000
23. Based on the preceding information, what amount would be reported as total stockholder's equity in the consolidated balance sheet at December 31, 2009?
A. $412,000 B. $394,000 C. $542,000 D. $348,000
24. Based on the preceding information, what amount would be reported as income to controlling interest in the consolidated financial statements for 2009?
A. $168,000 B. $138,000 C. $164,000 D. $150,000
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Government Contracts Audits And Compliance
Authors: Gregory A. Garrett
1st Edition
0808023926, 978-0808023920
