1. On January 1, 20X8, Parent Company reported total assets of $435,000, liabilities of $235,000, and stockholders equity of $200,000. At that date, Sub Company reported total assets of $180,000, liabilities of $125,000, and stockholders equity of $55,000. Parent acquires Sub by paying Subs existing shareholders $44,000 in cash for 80 percent of the voting common shares of Sub.

Immediately after Parent purchased Sub

1. What amount of total assets should Parent report in its individual balance sheet?

2. What amount of total assets should be reported in the consolidated balance sheet?

3. What amount of total liabilities should be reported in the consolidated balance sheet?

4. What amount of stockholders equity should be reported in the consolidated balance sheet?