On January 3, 2009, Jane Company acquired 75 percent of Miller Company’s outstanding common stock for cash. The fair value of the noncontrolling interest was equal to a proportionate share of the book value of Miller Company’s net assets at the date of acquisition. Selected balance sheet data at December 31, 2009, are as follows:
| Jan | Miller | |
| Total Assets | 504,000 | 216,000 |
| Liabelities | 144,000 | 72,000 |
| Common Stock | 120,000 | 60,000 |
| Retained Earning | 240,000 | 84,000 |
- Based on the preceding information, what amount should be reported as noncontrolling interest in net assets in Jane Company’s December 31, 2009, consolidated balance sheet?
A. $90,000
B. $54,000
C. $36,000
D. $0
- Based on the preceding information, what amount will Jane Company report as common stock outstanding in its consolidated balance sheet at December 31, 2009?
A. $120,000
B. $180,000
C. $156,000
D. $264,000
Beta Company acquired 100 percent of the voting common shares of Standard Video Corporation, its bitter rival, by issuing bonds with a par value and fair value of $150,000. Immediately prior to the acquisition, Beta reported total assets of $500,000, liabilities of $280,000, and stockholders’ equity of $220,000. At that date, Standard Video reported total assets of $400,000, liabilities of $250,000, and stockholders’ equity of $150,000. Included in Standard’s liabilities was an account payable to Beta in the amount of $20,000, which Beta included in its accounts receivable.
- Based on the preceding information, what amount of total assets did Beta report in its balance sheet immediately after the acquisition?
A. $500,000
B. $650,000
C. $750,000
D. $900,000
- Based on the preceding information, what amount of total assets was reported in the consolidated balance sheet immediately after acquisition?
A. $650,000
B. $880,000
C. $920,000
D. $750,000
- Based on the preceding information, what amount of total liabilities was reported in the consolidated balance sheet immediately after acquisition?
A. $500,000
B. $530,000
C. $280,000
D. $660,000
- Based on the preceding information, what amount of stockholders’ equity was reported in the consolidated balance sheet immediately after acquisition?
A. $220,000
B. $150,000
C. $370,000
D. $350,000
- Based on the preceding information, what amount should be reported as noncontrolling interest in net assets in Jane Company’s December 31, 2009, consolidated balance sheet?
A.$90,000
B. $54,000
C. $36,000
D. $0
- Based on the preceding information, what amount will Jane Company report as common stock outstanding in its consolidated balance sheet at December 31, 2009?
A.$120,000
B. $180,000
C. $156,000
D. $264,000
Beta Company acquired 100 percent of the voting common shares of Standard Video Corporation, its bitter rival, by issuing bonds with a par value and fair value of $150,000. Immediately prior to the acquisition, Beta reported total assets of $500,000, liabilities of $280,000, and stockholders’ equity of $220,000. At that date, Standard Video reported total assets of $400,000, liabilities of $250,000, and stockholders’ equity of $150,000. Included in Standard’s liabilities was an account payable to Beta in the amount of $20,000, which Beta included in its accounts receivable.
- Based on the preceding information, what amount of total assets did Beta report in its balance sheet immediately after the acquisition?
A.$500,000
B. $650,000
C. $750,000
D. $900,000
- Based on the preceding information, what amount of total assets was reported in the consolidated balance sheet immediately after acquisition?
A.$650,000
B. $880,000
C. $920,000
D. $750,000
- Based on the preceding information, what amount of total liabilities was reported in the consolidated balance sheet immediately after acquisition?
A.$500,000
B. $530,000
C. $280,000
D. $660,000
- Based on the preceding information, what amount of stockholders’ equity was reported in the consolidated balance sheet immediately after acquisition?
A.$220,000
B. $150,000
C. $370,000
D. $350,000
