Is: On January 2, year 1, ABC Company purchased 75% of XYZ's outstanding common stock. On that date, the fair value of the 25% noncontrolling interest was $35,000. During year 1, XYZ had net income of $20,000. Selected balance sheet data at December 31, year 1, is as follows: ABC (Column 1), XYZ (Column 2) * Total assets $420,000 $120,000 $180,000 $ 60,000 Liabilities Common stock 100,000 50,000 Retained carnings 200,000 $420.000 70,000 $180,000 During year 1, ABC and XYZ paid cash dividends of $25,000 and $5,000, respectively, to their shareholders. There were no other intercompany transactions. i::
Is: On January 2, year 1, ABC Company purchased 75% of XYZ's outstanding common stock. On that date, the fair value of the 25% noncontrolling interest was $35,000. During year 1, XYZ had net income of $20,000. Selected balance sheet data at December 31, year 1, is as follows: ABC (Column 1), XYZ (Column 2) * Total assets $420,000 $120,000 $180,000 $ 60,000 Liabilities Common stock 100,000 50,000 Retained carnings 200,000 $420.000 70,000 $180,000 During year 1, ABC and XYZ paid cash dividends of $25,000 and $5,000, respectively, to their shareholders. There were no other intercompany transactions. i::
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
In its December 31, year 1 consolidated balance sheet , what
amount should ABC report as common stock?
![Is: On
January 2, year 1, ABC Company purchased 75% of XYZ's
outstanding common stock. On that date, the fair value of
the 25% noncontrolling interest was $35,000. During year 1,
XYZ had net income of $20,000. Selected balance sheet data
at December 31, year 1, is as follows: ABC (Column 1), XYZ
(Column 2) *
Total assets
$420,000
$120.000
$180,000
$ 60,000
Liabilities
Common stock
100,000
200,000
50,000
Retained carnings
70,000
$180,000
$420.000
During year 1, ABC and XYZ paid cash dividends of $25,000
and $5,000, respectively, to their shareholders. There were no
other intercompany transactions. i:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd0f0b2f4-6417-4f14-871e-3d005fc81d93%2F95b42303-9fe2-45d9-8e12-ce729006f95f%2Fs8gq1mc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Is: On
January 2, year 1, ABC Company purchased 75% of XYZ's
outstanding common stock. On that date, the fair value of
the 25% noncontrolling interest was $35,000. During year 1,
XYZ had net income of $20,000. Selected balance sheet data
at December 31, year 1, is as follows: ABC (Column 1), XYZ
(Column 2) *
Total assets
$420,000
$120.000
$180,000
$ 60,000
Liabilities
Common stock
100,000
200,000
50,000
Retained carnings
70,000
$180,000
$420.000
During year 1, ABC and XYZ paid cash dividends of $25,000
and $5,000, respectively, to their shareholders. There were no
other intercompany transactions. i:
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