15. Parent and Sub Inc. had the following balance sheets on December 31, 2012: Parent Sub...

 

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15. Parent and Sub Inc. had the following balance sheets on December 31, 2012: Parent Sub $ 60,000 $10,000 Current Assets Fixed Assets (net) Total Assets Current Liabilities $100,000 $60,000 $160,000 $70,000 42,000 $35,000 Bonds Payable $ 20,000 $12,000 Common Shares $ 90,000 $12,000 Retained Earnings $ 8,000 $11,000 Total Liabilities and Equity $160,000 $70,000 On January 1, 2013 Parent purchased all of Sub Inc.'s Common Shares for $40,000 in cash. On that date, Sub's Current Assets and Fixed Assets were worth $26,000 and $54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, answer the following: The Shareholders' Equity section of the Consolidated Balance Sheet would show what amount? A. $19,000. B. $90,000. C. $98,000. D. $121,000. 15. Parent and Sub Inc. had the following balance sheets on December 31, 2012: Parent Sub $ 60,000 $10,000 Current Assets Fixed Assets (net) Total Assets Current Liabilities $100,000 $60,000 $160,000 $70,000 42,000 $35,000 Bonds Payable $ 20,000 $12,000 Common Shares $ 90,000 $12,000 Retained Earnings $ 8,000 $11,000 Total Liabilities and Equity $160,000 $70,000 On January 1, 2013 Parent purchased all of Sub Inc.'s Common Shares for $40,000 in cash. On that date, Sub's Current Assets and Fixed Assets were worth $26,000 and $54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, answer the following: The Shareholders' Equity section of the Consolidated Balance Sheet would show what amount? A. $19,000. B. $90,000. C. $98,000. D. $121,000.

Answer rating: 100% (QA)

The answer will be 121000 The Shareholders equity section of the co... View the full answer