Q5- On January 3, 20X9, Redding Company acquired 80 percent of Frazer Corporation's common stock for $344,000 at 80% of book value in cash. At the acquisition date, the book values and fair values of Frazer's net assets was equal. The stockholders' equity accounts of the two companies at the acquisition date are: Common Stock ($1 Par) Additional Paid in Capital Retained Earnings Total Stockholders' Equity Redding $500,000 300,000 350,000 $1,150,000 a- $1,580,000 b- $1,064,000 c- $1,200,000 d- $1,236,000 Frazer $100,000 80,000 70,000 $250,000 What is the total amount of stockholders' equity (including the noncontrolling interest) in the consolidated balance sheet as of January 3, 20X9?
Q5- On January 3, 20X9, Redding Company acquired 80 percent of Frazer Corporation's common stock for $344,000 at 80% of book value in cash. At the acquisition date, the book values and fair values of Frazer's net assets was equal. The stockholders' equity accounts of the two companies at the acquisition date are: Common Stock ($1 Par) Additional Paid in Capital Retained Earnings Total Stockholders' Equity Redding $500,000 300,000 350,000 $1,150,000 a- $1,580,000 b- $1,064,000 c- $1,200,000 d- $1,236,000 Frazer $100,000 80,000 70,000 $250,000 What is the total amount of stockholders' equity (including the noncontrolling interest) in the consolidated balance sheet as of January 3, 20X9?
Financial Accounting Intro Concepts Meth/Uses
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ISBN:9781285595047
Author:Weil
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Chapter14: Intercorporate Investments In Common Stock
Section: Chapter Questions
Problem 16E
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Transcribed Image Text:Q5- On January 3, 20X9, Redding Company acquired 80 percent of Frazer Corporation's
common stock for $344,000 at 80% of book value in cash. At the acquisition date, the book
values and fair values of Frazer's net assets was equal. The stockholders' equity accounts of
the two companies at the acquisition date are:
Common Stock ($1 Par)
Additional Paid in Capital
Retained Earnings
Total Stockholders' Equity
Redding
$500,000
300,000
350,000
$1,150,000
a- $1,580,000
b- $1,064,000
c- $1,200,000
d- $1,236,000
Frazer
$100,000
80,000
70,000
$250,000
What is the total amount of stockholders' equity (including the noncontrolling interest) in the
consolidated balance sheet as of January 3, 20X9?
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