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    jennikki's Avatar
    jennikki Posts: 1, Reputation: 1
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    #1

    Aug 1, 2010, 01:46 PM
    on the last day of the year jones company purchased 90% of common stock of smith inc.
    on the last day of the year jones company purchased 90% of smith inc. for $5000000. At the time, smith inc. reported the following on its balance sheet: assets $7400000; Liabilities$1300000; common stock, $10 par, $5000000; retained earnings $1100000. In negotiation the stock sale, it was determined that the book carrying amounts of smiths recorded assets and equities approx. their current market values.
    at the date of acquistion the amount to be reported on the consolidated balance sheet for minority is a)110000, b)500000c)610000 d)640000
    Clough's Avatar
    Clough Posts: 26,677, Reputation: 1649
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    #2

    Aug 1, 2010, 03:35 PM
    Quote Originally Posted by jennikki View Post
    on thw last day of the year jones company purchased 90% of smith inc., for $5000000. at the time, smith inc. reported the following on its balance sheet: assets $7400000; Liabilities$1300000; common stock, $10 par, $5000000; retained earnings $1100000. in negotiation the stock sale, it was determined that the book carrying amounts of smiths recorded assets and equities approx. their current market values.
    at the date of acquistion the amount to be reported on the consolidated balance sheet for minority is a)110000, b)500000c)610000 d)640000
    Hi, jennikki!

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