Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 3, 2019, Pair Co acquired 80% of Steel Co's common stock for $344,000 in cash. At the acquistion date the book values and

On January 3, 2019, Pair Co acquired 80% of Steel Co's common stock for $344,000 in cash. At the acquistion date the book values and fair values of Steel's assets and liabilities were equal and the fair value of the noncontrolling interest was equal to 20% of the total book value of Steel. The stockholder's equity accounts of the two companies at the acquisition date are: Pair Steel

Common Stock ($5 par value) 500,000 200,000

Additional Paid In Capital 300,000 80,000

Retained Earnings 350,000 150,000

Total Stockholders Equity 1,150,000 430,000

Noncontrolling interest was assigned income of $11,000 in Pair's consolidated income statement for 2019.

What is the total stockholder's equity in the consolidated balance sheet as of January 3, 2019?

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

Step: 3

blur-text-image

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

Internal Quality Auditing

Authors: Denis Pronovost

1st Edition

0873894766, 9780873894760

More Books

Students also viewed these Accounting questions

Question

What is meant by convergence of U.S. GAAP and IFRS?

Answered: 1 week ago