Assume that Pop Corporation acquires 60 percent of the voting common stock of Son Corporation for $6,000,000 and that a consolidated balance sheet is prepared immediately after the acquisition Would total consolidated assets be equal to their fair values if the parent company theory were applied If...

Consolidated assets are equal to their fair values ...

Assume that Pop Corporation acquires 60 percent of the voting common stock of Son Corporation for $6,000,000

Question:

Assume that Pop acquires 60 percent of the voting of Son for $6,000,000 and that a consolidated is prepared immediately after the acquisition. Would total consolidated assets be equal to their fair values if the parent-company theory were applied? If the entity theory were applied?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...