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Use the following information for questions through On January 1, 20X9, Zigma Company acquired 100 percent of Standard Company's common shares at underlying book valvo,

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Use the following information for questions through On January 1, 20X9, Zigma Company acquired 100 percent of Standard Company's common shares at underlying book valvo, ... paying the same as Standard Co.'s book value. The balance of Retained Earings on January 1, 20x9 for Zigma is 175.000, and for Standard is 35,000 Zigma uses the equity method in accounting for its ownership of Standard. On December 31, 20x9, the trial balances of the two companies are as follows: Item Current assets Depreciable assets Investment in Standard Co. Other expenses Depreciation expense Dividends declared Accumulated depreciation Current liabilities Long-term debt Common stock Retained earnings Sales Income from Standard Co. Zigma Co Standard Co. Debit Credit Debit Credit 238000 95000 300000 170000 100000 90000 70000 30000 17000 32000 10000 120000 85000 50000 30000 120000 50000 100000 50000 175000 35000 200000 112000 25000 790000 790000 362000 362000 5. On December 31, 20X9, which of the following financial statements need to be consolidated by Zigma? all of the financial statements O only statement of retained earnings QUESTION 7 6. On the Consolidated income statement, "Income from Standard Co." has a balance of 0 25,000 O Information is insufficient to figure out the balance. Oo O 35,000 QUESTION 8 7. On the consolidated statement of retained earnings, retained earnings has a beginning balance of O 298,000 175,000 O 248,000 O 50,000 QUESTION 9 8. On the consolidated balance sheet, common stock has a balance of O 50,000 none of the above 150.000 100,000 QUESTION 10 9. On the consolidated statement of retained earnings, dividends declared has a balance of O 10.000 O 22.000 42,000 O 32,000 QUESTION 11 10. On the consolidated statement of retained earnings, retained earnings has an ending balance of O 50,000 O 248,000 O 175,000 O 298,000

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