P Company purchased 80% of theoutstanding common stock of SCompany on January 2, 2011, for$360,000. And any differencebetween the value implied by thepurchase price of the investment andthe book value of net assets acquiredrelates to subsidiary land. The bookvalues of S Company's other assetsand liabilities are equal to their fairvalues. Balance sheets for PCompany and S Companyimmediately after the stockacquisition were as follows:P Company$ 166,000S CompanyS 80,000Current assetsInvestment in S CompanyPlant and equipment (net)360,000-0-560,000224,000Land40,000120,000Total$1.126,000$424,000$ 100,000$ 28,000Current liabilitiesLong-term notes payableCommon stock-0-36,000480,000160,000Other contributed capitaRetained earnings244,00064,000302,000136,000$424,000Total$1.126,000 The consolidated balance sheet for Pand S Companies on the date ofacquisition will include: *Current Assets of $244,000Current Liabilities of $144,000Noncontrolling Interest of $90,000Land of $160,000O None of the options is correct

The non-controlling interest (NCI) is a position of ownership where one holds even less than half of…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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