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Required in Use the following information to answer questions 7 and 8 On January 1, 2016, Pride Corporation 90 percent of the outstanding voting shares

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Required in Use the following information to answer questions 7 and 8 On January 1, 2016, Pride Corporation 90 percent of the outstanding voting shares of Star, Inc. for $429,000 cash. The acquisit otal carrying amount of $333,900 Equipment (eight-year remaining life) was undervalued on Star's financial records by te fair value of the noncontrolling interest was $47,700. At January 1, 2016, Star's net assets had a $54,400 Any remaining excess fair value over book value was attributed to a customer list d year since the acquisition, Star has declared a $13,600 dividend. At January 1, 2018, Pride's retained earnings show a by Star four-year life). but not r on its books Star recorded net income of $47600 in 2016 and $54.400 in 2017 Each $170,000 balance Selected account balances for the two companies from their separate operations were as follows 238,2 132,70 Problem 4-8 (LO 4-4) that Pride, in its internal records, accounts for its investment in Star using the equity method, what amount of retained earnings would Pride report on its January 1, balance sheet? Multiple Choice $170000 Required in Use the following information to answer questions 7 and 8 On January 1, 2016, Pride Corporation 90 percent of the outstanding voting shares of Star, Inc. for $429,000 cash. The acquisit otal carrying amount of $333,900 Equipment (eight-year remaining life) was undervalued on Star's financial records by te fair value of the noncontrolling interest was $47,700. At January 1, 2016, Star's net assets had a $54,400 Any remaining excess fair value over book value was attributed to a customer list d year since the acquisition, Star has declared a $13,600 dividend. At January 1, 2018, Pride's retained earnings show a by Star four-year life). but not r on its books Star recorded net income of $47600 in 2016 and $54.400 in 2017 Each $170,000 balance Selected account balances for the two companies from their separate operations were as follows 238,2 132,70 Problem 4-8 (LO 4-4) that Pride, in its internal records, accounts for its investment in Star using the equity method, what amount of retained earnings would Pride report on its January 1, balance sheet? Multiple Choice $170000

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