Question: This is a sample CPA FAR question: Company ABC recently acquired a subsidiary and needs to prepare consolidated financial statements. The subsidiary has assets worth

This is a sample CPA FAR question:

Company ABC recently acquired a subsidiary and needs to prepare consolidated financial statements. The subsidiary has assets worth $2 million, liabilities of $800,000, and common stock of $600,000. The non-controlling interest in the subsidiary is 20%. What is the consolidated value of the subsidiary's liabilities that should be reported?

A) $800,000 B) $640,000 C) $520,000 D) $480,000

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