FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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4

P Co acquired 100% of the voting common shares of
S Co, by issuing bonds with a par value and fair value
of $150,000. Immediately before the acquisition P
reported total assets of $250,000, liabilities of
$140,000, and stockholders' equity of $110,000. At
that date, S reported total assets of $200,000,
liabilities of $125,000, and stockholders' equity of
$75,000
Based on the preceding information, what amount of
stockholders' equity was reported in the
consolidated balance sheet immediately after the
acquisition?
Select one:
a. 175,000
b. 75,000
c. 110,000
d. 185,000
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Transcribed Image Text:P Co acquired 100% of the voting common shares of S Co, by issuing bonds with a par value and fair value of $150,000. Immediately before the acquisition P reported total assets of $250,000, liabilities of $140,000, and stockholders' equity of $110,000. At that date, S reported total assets of $200,000, liabilities of $125,000, and stockholders' equity of $75,000 Based on the preceding information, what amount of stockholders' equity was reported in the consolidated balance sheet immediately after the acquisition? Select one: a. 175,000 b. 75,000 c. 110,000 d. 185,000
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