Pob Corporation acquired an 80 percent interest in Sof Corporation on January 2, 2011, for $1,400,000. On

Question:

Pob Corporation acquired an 80 percent interest in Sof Corporation on January 2, 2011, for $1,400,000. On this date the capital stock and retained earnings of the two companies were as follows (in thousands):

The assets and liabilities of Sof were stated at fair values equal to book values when Pob acquired its 80 percent interest. Pob uses the equity method to account for its investment in Sof. Net income and dividends for 2011 for the affiliated companies were as follows:

REQUIRED: Calculate the amounts at which the following items should appear in the consolidated balance sheet on December 31, 2011.1. Capital stock2. Goodwill3. Consolidated retained earnings4. Noncontrolling interest5. Dividendspayable

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...