Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 15 Not yet answered Marked out of 1.50 P Flag question B Co acquired 100% of C Co outstanding capital stock for $430,000 cash.

image text in transcribed

image text in transcribed

Question 15 Not yet answered Marked out of 1.50 P Flag question B Co acquired 100% of C Co outstanding capital stock for $430,000 cash. Immediately before the purchase, the balance sheets reported the following: B 1,000,000 Assets 375,000 375,000 Liabilities 200,000 Common Stock 500,000 155,000 Retained Earnings 125,000 20,000 At the date of purchase, the fair value of C assets was $50,000 more than the book value. In the consolidated balance sheet prepared immediately after the purchase, the consolidated stockholders' equity reported amount to 1,000,000 Assets 375,000 375,000 Liabilities 200,000 500,000 Common Stock 155,000 Retained Earnings 20,000 125,000 At the date of purchase, the fair value of C assets was $50,000 more than the book value. In the consolidated balance sheet prepared immediately after the purchase,the consolidated stockholders' equity reported amount to Select one: a. 625,000 b. 800,000 c. 825,000 d. 840,000

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

Contemporary Auditing

Authors: Michael C Knapp

12th Edition

357515404, 978-0357515402

More Books

Students also viewed these Accounting questions

Question

=+5. How would you rewrite the copy to make it more effective?

Answered: 1 week ago