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    Pare Company purchased 75 percent of Kidd Company's stock

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    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.

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    https://brainmass.com/business/balance-sheet/257550

    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.

    $2.19

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