Refer to the preceding problem, number 2. Suppose the investment in Alberta Development was $350,000 instead of

Question:

Refer to the preceding problem, number 2. Suppose the investment in Alberta Development was

$350,000 instead of the $300,000 as stated. The fair-market values of Alberta’ assets and liabilities were equal to their book values. Would the consolidated income differ? How? Be as specific as possible. Would the consolidated balance sheet differ? How? Be as specific as possible.

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...