Preferred stock-9%, $100 par value, cumulative and participating; 10,000 shares outstanding...... Common stock-$50 par value; 40,000 shares outstanding. $ 1,000,000 2,000,000 Retained earnings..... Total stockholders' equity . 3,000,000 $ 6,000,000
On January 1, Tesco Company spent a total of $4,384,000 to acquire control over Blondel Company. This price was based on paying $424,000 for 20 percent of Blondel’s preferred stock and $3,960,000 for 90 percent of its outstanding common stock. At the acquisition date, the fair value of the 10 percent noncontrolling interest in Blondel’s common stock was $440,000. The fair value of the 80 percent of Blondel’s
Tesco believes that all of Blondel’s accounts approximate their fair values within the company’s financial statements. What amount of consolidated
a. $ 300,000
b. $ 316,000
c. $ 364,000
d. $ 520,000
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