On January 1, 20X3, Parent Corporation reported total assets of $470,000, liabilities $270,000, and stockholder's equity of $200,000. At that date, Sub. Corporation reported total assets of $190,000, liabilities of $135,000, and stockholder's equity of $55,000. Following lengthy negotiations, Parent paid Sub's existing shareholders $44,000 in cash for 80 percent of the voting common shares of Sub and acquired control. > What amount of total assets did Parent report in its individual balance sheet? > What amount of total assets was reported in the consolidated balance sheet? > What amount of total liabilities was reported in the consolidated balance sheet? > What amount of stockholder's equity was reported in the consolidated balance sheet?
On January 1, 20X3, Parent Corporation reported total assets of $470,000, liabilities $270,000, and stockholder's equity of $200,000. At that date, Sub. Corporation reported total assets of $190,000, liabilities of $135,000, and stockholder's equity of $55,000. Following lengthy negotiations, Parent paid Sub's existing shareholders $44,000 in cash for 80 percent of the voting common shares of Sub and acquired control. > What amount of total assets did Parent report in its individual balance sheet? > What amount of total assets was reported in the consolidated balance sheet? > What amount of total liabilities was reported in the consolidated balance sheet? > What amount of stockholder's equity was reported in the consolidated balance sheet?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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Transcribed Image Text:On January 1, 20X3, Parent Corporation reported total assets of $470,000, liabilities
$270,000, and stockholder's equity of $200,000. At that date, Sub. Corporation reported
total assets of $190,000, liabilities of $135,000, and stockholder's equity of $55,000.
Following lengthy negotiations, Parent paid Sub's existing shareholders $44,000 in cash for
80 percent of the voting common shares of Sub and acquired control.
What amount of total assets did Parent report in its individual balance sheet?
> What amount of total assets was reported in the consolidated balance sheet?
What amount of total liabilities was reported in the consolidated balance sheet?
What amount of stockholder's equity was reported in the consolidated balance sheet?
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