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pany acquires T00j0 othe stockof 30lar Cor on on jan 2019.1or 0000cash. As of that date Soiar had the folowing account batances Book Value Edir value Cash $630.000 $630,000 Accounts receivable 775.000 775,000 Inventory 350.000 400,000 Building-net (10 year life) Equipment-net (5 year life) 1,000.000 900,000 300,000 400.000 Land 600.000 900,000 Accounts Payable 125.000 125,000 Bonds Payable (Face amount $1,000,000. due 12/31/2023) Common stock Additional paid-in capital Retained earnings 2.000.000 2,050,000 500,000 250.000 780.000 in 2019 and 2020, Solar had net income of $250,000 and $240,000, respectively. In addition, Solar paid dividends of $16,000 in both years, Inventory is assumed to be sold in 2019. Assume straight line amortization/ depreciation for assets and bonds payable. What amount of Solars single legal entity stockholders' equity will be included in the consolidated balance sheet at date of acquisition? Select one A $2.064.000 B. $3.350,000 O C S1,530,000 D.S0

pany acquires T00j0 othe stockof 30lar Cor on on jan 2019.1or 0000cash. As of that date Soiar had the folowing account batances Book Value Edir value Cash $630.000 $630,000 Accounts receivable 775.000 775,000 Inventory 350.000 400,000 Building-net (10 year life) Equipment-net (5 year life) 1,000.000 900,000 300,000 400.000 Land 600.000 900,000 Accounts Payable 125.000 125,000 Bonds Payable (Face amount $1,000,000. due 12/31/2023) Common stock Additional paid-in capital Retained earnings 2.000.000 2,050,000 500,000 250.000 780.000 in 2019 and 2020, Solar had net income of $250,000 and $240,000, respectively. In addition, Solar paid dividends of $16,000 in both years, Inventory is assumed to be sold in 2019. Assume straight line amortization/ depreciation for assets and bonds payable. What amount of Solars single legal entity stockholders' equity will be included in the consolidated balance sheet at date of acquisition? Select one A $2.064.000 B. $3.350,000 O C S1,530,000 D.S0

Cornerstones of Financial Accounting
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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Huey Company acquires 100% of the stock of Solar Corporation on january 1, 2019, for $2.400,000 cash. As of that date Solor had the following account balances: Book Value Eair value Cash $630.000 $630,000 Accounts receivable 775.000 775,000 Inventory 350.000 400,000 Building-net (10 year life) 1,000,000 900,.000 Equipment-net (5 year life) 300.000 400.000 Land 600,000 900,000 Accounts Payable 125.000 125,000 Bonds Payable (Face amount S1,000,000. due 12/31/2023) 2.000.000 2,050,000 Common stock 500,000 Additional paid-in capital Retained earnings 250.000 780.000 in 2019 and 2020, Solar had net income of $250,000 and $240,000, respectively In addition, Solar paid dividends of $16,000 in both years, Inventory is assumed to be sold in 2019. Assume straight line amortization/ depreciation for assets and bonds payable. What amount of Solars single legat entity stockholders' equity will be included in the consolidated balance sheet at date of acquisition? Select one A $2.064.000 B $3,350,000 O C.S1,530,000 D. S0
Transcribed Image Text:Huey Company acquires 100% of the stock of Solar Corporation on january 1, 2019, for $2.400,000 cash. As of that date Solor had the following account balances: Book Value Eair value Cash $630.000 $630,000 Accounts receivable 775.000 775,000 Inventory 350.000 400,000 Building-net (10 year life) 1,000,000 900,.000 Equipment-net (5 year life) 300.000 400.000 Land 600,000 900,000 Accounts Payable 125.000 125,000 Bonds Payable (Face amount S1,000,000. due 12/31/2023) 2.000.000 2,050,000 Common stock 500,000 Additional paid-in capital Retained earnings 250.000 780.000 in 2019 and 2020, Solar had net income of $250,000 and $240,000, respectively In addition, Solar paid dividends of $16,000 in both years, Inventory is assumed to be sold in 2019. Assume straight line amortization/ depreciation for assets and bonds payable. What amount of Solars single legat entity stockholders' equity will be included in the consolidated balance sheet at date of acquisition? Select one A $2.064.000 B $3,350,000 O C.S1,530,000 D. S0
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