Mr. and Mrs. Tan own 100% of the common stock of ABC Company and 90% of the common stock of XYZ Company. ABC previously paid P4,000 for the remaining 10% interest in XYZ. The condensed December 31, year 1 balance sheets of ABC (Col 1) and XYZ (Col 2) are as follows. In a combined balance sheet of the two corporations at December 31, year 1, what amount should be reported as total stockholders' equity? * $600,000 $200.000 $60,000 $30,000 Assets Liabilities 100,000 20,000 Common stock 10,000 $60,000 Retained earnings 300,000 $600,000 Your answer
Mr. and Mrs. Tan own 100% of the common stock of ABC Company and 90% of the common stock of XYZ Company. ABC previously paid P4,000 for the remaining 10% interest in XYZ. The condensed December 31, year 1 balance sheets of ABC (Col 1) and XYZ (Col 2) are as follows. In a combined balance sheet of the two corporations at December 31, year 1, what amount should be reported as total stockholders' equity? * $600,000 $200.000 $60,000 $30,000 Assets Liabilities 100,000 20,000 Common stock 10,000 $60,000 Retained earnings 300,000 $600,000 Your answer
Chapter22: S Corporations
Section: Chapter Questions
Problem 8BCRQ
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Question
Transcribed Image Text:Mr. and Mrs. Tan own 100% of the common stock of ABC
Company and 90% of the common stock of XYZ Company.
ABC previously paid P4,000 for the remaining 10% interest in
XYZ. The condensed December 31, year 1 balance sheets of
ABC (Col 1) and XYZ (Col 2) are as follows. In a combined
balance sheet of the two corporations at December 31, year
1, what amount should be reported as total stockholders'
equity? *
$60,000
$30,000
20,000
10,000
$60,000
$600,000
$200.000
Assets
Liabilities
Common stock
100,000
Retained earnings
300,000
$600,000
Your answer
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