Passerby International purchased 80% of Standaround Company's outstanding common stock for $200,000 on January 2, 2014....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Passerby International purchased 80% of Standaround Company's outstanding common stock for $200,000 on January 2, 2014. At that time, the fair value of Standaround's net assets were equal to the book values. The balance sheets of Passerby and Standaround at January 2, 2014 are summarized as follows: Passerby Standaround $1,600,000 Assets $470,000 Liabilities $840,000 $230,000 Capital stock Retained earnings 360,000 50,000 400,000 190,000 Required: Determine the consolidated balances as of January 2, 2014 for the following five balance sheet line items: Goodwill, Liabilities, Capital Stock, Retained Earnings, and Noncontrolling Interest. Passerby International purchased 80% of Standaround Company's outstanding common stock for $200,000 on January 2, 2014. At that time, the fair value of Standaround's net assets were equal to the book values. The balance sheets of Passerby and Standaround at January 2, 2014 are summarized as follows: Passerby Standaround $1,600,000 Assets $470,000 Liabilities $840,000 $230,000 Capital stock Retained earnings 360,000 50,000 400,000 190,000 Required: Determine the consolidated balances as of January 2, 2014 for the following five balance sheet line items: Goodwill, Liabilities, Capital Stock, Retained Earnings, and Noncontrolling Interest.
Expert Answer:
Answer rating: 100% (QA)
Required solution of all parts is given below PART1 Solution 10000 Explanation Imp... View the full answer
Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
Posted Date:
Students also viewed these accounting questions
-
The A ratio may indicate the firm is experiencing stock outs and lost sales. Average payment period B Inventory turnover D C Average collection period Quick
-
By analyzing the interrelationships among the financial statements, fill in the proper amounts for (a) through (s). If your answer is zero enter "0". a. Fees earned $ b. Utilities expense $ c. Net...
-
On January 1, 2014, Wins Inc. acquired a 70 percent interest in Matt Inc. at a cost of $1,400,000. Matt Inc.s net assets on this date were $1,500,000. During 2014, Matt Inc. reported net income of...
-
Use any method to evaluate the limit or show that it does not exist. lim (x,y) (0,0) x - y x + y
-
To evaluate the difference in the reliabilities of cooling motors for PCs from two suppliers, an accelerated life test is performed on 50 motors randomly selected from the warehouses of the two...
-
As of 2008, per capita spending on health care in the United States was about $8,000. If this amount increased by 5 percent a year, what would be the amount of per capital spending for health care in...
-
Describe and distinguish between qualitative and quantitative forecasting techniques. When should each of these forecasting techniques be used?
-
On March 10, 2017, Steele Company sold to Barr Hardware 200 tool sets at a price of $50 each (cost $30 per set) with terms of n/60, f.o.b. shipping point. Steele allows Barr to return any unused tool...
-
Dodd Corp. is preparing its December 31 financial statements and must determine the proper accounting treatment for the following situations: For the year ended December 31, Dodd has a loss carry...
-
Explain FIVE factors that influences the behaviour of cost in response to changes in an organisation's level of activity
-
Actual and formal arguments are important parts of a program. The difference Between Actual and Formal Parameters is that the actual parameter is used to invoke the information while executing the...
-
Use Adams' plan in Problems 8-10. Show that it violates the quota rule. State: A Population: 68,500 Number of seats: 100 B 34,700 C 16,000 D 9,500
-
Describe and discuss the approval voting method.
-
What is the quota rule? Does this rule make sense to you? Discuss.
-
Modified quotas are given in Problems 7-14. Round your answers to two decimal places. a. Find the lower and upper quotas. b. Find the arithmetic mean of the lower and upper quotas. c. Find the...
-
In an election with three candidates, \(\mathrm{A}, \mathrm{B}\), and \(\mathrm{C}\), we find the following results of the voting: Use this information in Problems 6-7. Is there a Condorcet winner?...
-
Rabbit Company's Accounts Payable account had a balance of $22,200 on September 1, 2019, and a balance of $27,000 on September 30, 2019. During September 2019, the company made total payments of...
-
One hundred pounds of water at atmospheric pressure are heated from 60F to 200F. What is the enthalpy change? The internal energy change? Why is the difference between the internal energy change and...
-
What does the term last- in, first-out mean? What is the impact of this cost flow assumption on the income statement and balance sheet?
-
McDougall Corporation is authorized to issue 500,000 shares of $ 40 par value, 10 percent cumulative preferred stock and 2,000,000 shares of $ 0.01 par value common stock. The following transactions...
-
What are the three phases of the management cycle and how are these phases related?
-
Explain how objects interact by exchanging messages.
-
Describe the relationship between dynamic modeling, behavioral modeling, and structural modeling.
-
Comment on this statement: Dynamic modeling is about interaction.
Study smarter with the SolutionInn App