Balance sheet information for parent Company and its 90%-owned subsidiary, Sub Corporation, at December 31, 2021, is summarized as follows: Parent Sub Current assets-net $ 200,000 $ 50,000 Property, plant, and equipment-net 1,000,000 600,000 Investment in Sox 558,000 $1,758,000 $650,000 Current liabilities $ 100,000 $ 30,000 Capital stock 800,000 400,000 Retained earnings 858,000 220,000 $1,758,000 $650,000 Parent acquired its interest in Sub for cash at book value several years ago when Sub's assets and liabilities were equal to their fair values. Consolidated total assets of Parent and Sub, at December 31, 2021, will be ____. a. $1,785,000 b. $1,850,000 c. $2,343,000
Balance sheet information for parent Company and its 90%-owned subsidiary, Sub Corporation, at December 31, 2021, is summarized as follows:
|
|
Parent |
Sub |
|
Current assets-net |
$ 200,000 |
$ 50,000 |
|
Property, plant, and equipment-net |
1,000,000 |
600,000 |
|
Investment in Sox |
558,000 |
|
|
|
$1,758,000 |
$650,000 |
|
|
|
|
|
Current liabilities |
$ 100,000 |
$ 30,000 |
|
Capital stock |
800,000 |
400,000 |
|
|
858,000 |
220,000 |
|
|
$1,758,000 |
$650,000 |
Parent acquired its interest in Sub for
Consolidated total assets of Parent and Sub, at December 31, 2021, will be ____.
|
a. |
$1,785,000 |
|
b. |
$1,850,000 |
|
c. |
$2,343,000 |
|
d. |
$2,408,000 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
