Question
On January 1, 20X3, Zepplin Corporation reported total assets of $470,000, liabilities of $270,000, and stockholders equity of $200,000. At that date, Floyd Corporation reported
On January 1, 20X3, Zepplin Corporation reported total assets of $470,000, liabilities of $270,000, and stockholders equity of $200,000. At that date, Floyd Corporation reported total assets of $190,000, liabilities of $135,000, and stockholders equity of $55,000. Following lengthy negotiations, Zepplin paid Floyds existing shareholders $44,000 in cash for 80 percent of the voting common shares of Floyd. Required: 1) What amount of total assets did Zepplin report in its individual balance sheet? 2) What amount of total assets was reported in the consolidated balance sheet? 3) What amount of total liabilities was reported in the consolidated balance sheet? 4) What amount of stockholders equity was reported in the consolidated balance sheet?
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