Beni Corp . purchased 100 % of Carr Corp .' s outstanding capital stock for $ 430,000 cash . Immediately before the purchase , the balance sheets of both corporations reported the following : On the date of purchase , the fair value of Carr ' s assets was $ 50,000 more than the aggregate carrying amounts . In the consolidated balance sheet prepared immediately after the purchase , the consolidated stockholders ' equity should amount to :
Question 10
Which one of the following methods , if any , may a parent use on its books to carry an investment in a subsidiary that it will consolidate ?
Question 11
Parco owns 100 % of its subsidiary , Subco , which it acquired at book value . It carries its investment in Subco on its books using the equity method of accounting . At the beginning of its 2009 fiscal year , the investment in Subco account was $ 552,000 . During 2009 Subco reported the following : In preparing its 2009 fiscal year consolidated statements , which one of the following is the total amount of equity revenue that Parco will have to reverse for 2009 as a result of it ownership of Subco ?
Question 12
Which of the following kinds of transactions should be eliminated in the consolidating process ?
Question 13