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Pare Company purchased 75 percent of Kidd Company's stock

On January 2, 2008, Pare Company purchased 75 percent of Kidd Company's outstanding common stock. Selected balance sheet data at December 31, 20X8, is as follows:

Pare Kidd
Company Company
Total Assets $420,000 $180,000
Liabilities $120,000 $ 60,000
Common Stock 100,000 50,000
Retained Earnings 200,000 70,000
$420,000 $180,000

In Pare's December 31, 20X8, consolidated balance sheet, what amount should be reported as minority interest in net assets?
a. $0.
b. $30,000.
c. $45,000.
d. $105,000.

26. In its consolidated balance sheet at December 31, 20X8, what amount should Pare report as common stock outstanding?
a. $50,000.
b. $100,000.
c. $137,500.
d. $150,000.

Solution Preview

Answer 1: Option c, $45,000
Minority interest is a consolidation concept and not stand alone financial statement concept. Minority interest arise in consolidating financial ...

Solution Summary

Detailed explanation attached.

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