On January 1, 2018, Plimsol Company acquired 100 percent of Shipping Corporation's voting shares, at underlying book value. Plimsol uses the cost method in accounting for its investment in Shipping. Shipping's retained earnings was $150,000 on the date of acquisition. On December 31, 2018, the trial balance data for the two companies were as follows:

16. Based on the information provided, what amount of net income would be reported in the consolidated financial statements prepared on December 31, 2018? *

$220,000

$170,000

$200,000

$250,000

None of the above

17. Based on the information provided, what amount of total assets would be reported in the consolidated balance sheet prepared on December 31, 2018? *

$850,000

$1,050,000

$1,030,000

$1,260,000

None of the above

18. Based on the information provided, what amount of retained earnings would be reported in the consolidated balance sheet prepared on December 31, 2018? *

$420,000

$470,000

$620,000

$450,000

None of the above

19. Based on the information provided, what amount of total liabilities would be reported in the consolidated balance sheet prepared on December 31, 2018? *

$1,050,000

$230,000

$380,000

$250,000

None of the above

20. Based on the information provided, what amount of total stockholder's equity would be reported in the consolidated balance sheet prepared on December 31, 2018? *

$380,000

$520,000

$920,000

$670,000

None of the above

Plimsel Company Debit Credit Shipping Corporation Debit Credit $150,000 300,000 Item Current Assets Depreciable Assets (net) Investment in Shipping Corp. Cost of Goods Sold Depreciation Expense Dividends Declared Current Liabilities Long-Term Debt Common Stock Retained Earnings Sales Dividend Income $200,000 400,000 250,000 120.000 40,000 50,000 90.000 30,000 30,000 $80,000 150.000 200.000 300.000 300.000 30,000 $1.060.000 550.000 100,000 100,000 150.000 200.000 $1.060.000 $600.000 5600,000