The consolidated balance sheet of Rosa Corporation and Gonzlez Farm, its 90% owned subsidiary, as of December

Question:

The consolidated balance sheet of Rosa Corporation and González Farm, its 90% owned subsidiary, as of December 31, 2005, contains the following accounts and balances:

Rosa Corporation and Subsidiary

Consolidated Balance Sheet

at December 31, 2005

Balances

Cash..........................................................$19,000

Accounts receivable-net....................................$70,000

Inventories.................................................$110,000

Other current assets.........................................$85,000

Plant assets-net.............................................$290,000

Goodwill from consolidation..............................$39,000

...............................................................$613,000

Accounts payable............................................$73,000

Other liabilities...............................................$70,000

Capital stock................................................$350,000

Retained earnings............................................$80,000

Noncontrolling interest......................................$40,000

................................................................$613,000

Rosa Corporation acquired its 90% interest in González Farm on January 1, 2005, when González Farm had $150,000 of Capital Stock and $70,000 of Retained Earnings. González Farm's net assets had fair values equal to their book values when Rosa acquired its interest. No changes have occurred in the amount of outstanding stock since the date of the business combination. Rosa uses the equity method of accounting for its investment.

Required:

Determine the following amounts:

1. The balance of Rosa's Capital Stock and Retained Earnings accounts at December 31, 2005.

2. Cost of Rosa's purchase of González Farm on January 1, 2005.

3. González Farms's stockholders' equity on December 31, 2005.

4. Rosa's Investment in González Farm account balance at December 31, 2005.

Balance Sheet
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