The consolidated balance sheet for P and S Companies on the date of acquisition will include: * Current Assets of $244,000 Current Liabilities of $144,000 Noncontrolling Interest of $90,000 O Land of $160,000 None of the options is correct O O
The consolidated balance sheet for P and S Companies on the date of acquisition will include: * Current Assets of $244,000 Current Liabilities of $144,000 Noncontrolling Interest of $90,000 O Land of $160,000 None of the options is correct O O
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![P Company purchased 80% of the
outstanding common stock of S
Company on January 2, 2011, for
$360,000. And any difference
between the value implied by the
purchase price of the investment and
the book value of net assets acquired
relates to subsidiary land. The book
values of S Company's other assets
and liabilities are equal to their fair
values. Balance sheets for P
Company and S Company
immediately after the stock
acquisition were as follows:
P Company
$ 166,000
S Company
S 80,000
Current assets
Investment in S Company
Plant and equipment (net)
360,000
-0-
560,000
224,000
Land
40,000
120,000
Total
$1.126,000
$424,000
$ 100,000
$ 28,000
Current liabilities
Long-term notes payable
Common stock
-0-
36,000
480,000
160,000
Other contributed capita
Retained earnings
244,000
64,000
302,000
136,000
$424,000
Total
$1.126,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faddc4805-05d2-41e0-9d8e-70204464747a%2F0eec74c2-49fc-4f24-97f4-22bc7a877238%2F3ol784h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:P Company purchased 80% of the
outstanding common stock of S
Company on January 2, 2011, for
$360,000. And any difference
between the value implied by the
purchase price of the investment and
the book value of net assets acquired
relates to subsidiary land. The book
values of S Company's other assets
and liabilities are equal to their fair
values. Balance sheets for P
Company and S Company
immediately after the stock
acquisition were as follows:
P Company
$ 166,000
S Company
S 80,000
Current assets
Investment in S Company
Plant and equipment (net)
360,000
-0-
560,000
224,000
Land
40,000
120,000
Total
$1.126,000
$424,000
$ 100,000
$ 28,000
Current liabilities
Long-term notes payable
Common stock
-0-
36,000
480,000
160,000
Other contributed capita
Retained earnings
244,000
64,000
302,000
136,000
$424,000
Total
$1.126,000
![The consolidated balance sheet for P
and S Companies on the date of
acquisition will include: *
Current Assets of $244,000
Current Liabilities of $144,000
Noncontrolling Interest of $90,000
Land of $160,000
O None of the options is correct](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faddc4805-05d2-41e0-9d8e-70204464747a%2F0eec74c2-49fc-4f24-97f4-22bc7a877238%2Farzrnlm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The consolidated balance sheet for P
and S Companies on the date of
acquisition will include: *
Current Assets of $244,000
Current Liabilities of $144,000
Noncontrolling Interest of $90,000
Land of $160,000
O None of the options is correct
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