Passerby International purchased 80% of Standaround Company's outstanding common stock for $200,000 on January 2, 2014....

 

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.

Answer rating: 100% (QA)

Required solution of all parts is given below PART1 Solution 10000 Explanation Imp... View the full answer