Based on the preceding information what amount would be

Reference no: EM13580830

On January 1, 2008, Wilhelm Corporation acquired 90 percent of Kaiser Company's voting stock, at underlying book value. The fair value of the noncontrolling interest was equal to 10 percent of the book value of Kaiser at that date. Wilhelm uses the equity method in accounting for its ownership of Kaiser. On December 31, 2009, the trial balances of the two companies are as follows:

Wilhelm corporation Kaiser company

Item Debit Credit Debit Credit

Current Assets 200,000 140,000

Depreciable Assets 350,000 250,000

Investment in Kaiser Company Stock 162,000

Depreciation Expense 27,000 10,000

Other Expense 95,000 60,000

Dividends Declared 20,000 10,000

Accumulated Depreciation 118,000 80,000

Current Liabilities 100,000 80,000

Long-Term Debt 100,000 50,000

Common Stock 100,000 50,000

Retained Earnings 150,000 100,000

Sales 250,000 110,000

Income from Subsidiary 36,000

Total 854,000 854,000 470,000 470,000

1. Based on the preceding information, what amount would be reported as total assets in the consolidated balance sheet at December 31, 2009?

A. $805,000 B. $712,000 C. $742,000 D. $1,102,000

2. Based on the preceding information, what amount would be reported as total liabilities in the consolidated balance sheet at December 31, 2009?

A. $330,000 B. $712,000 C. $318,000 D. $130,000

3.Based on the preceding information, what amount would be reported as retained earnings in the consolidated balance sheet prepared at December 31, 2009?

A. 314,000 B. 294,000 C. 150,000 D. 424,000

4. Based on the preceding information, what amount would be reported as noncontrolling interest in the consolidated balance sheet at December 31, 2009?

A. $27,000 B. $4,000 C. $15,000 D. $18,000

5. Based on the preceding information, what amount would be reported as total stockholder's equity in the consolidated balance sheet at December 31, 2009?

A. $412,000 B. $394,000 C. $542,000 D. $348,000

6. Based on the preceding information, what amount would be reported as income to controlling interest in the consolidated financial statements for 2009?

A. $168,000 B. $138,000 C. $164,000 D. $150,000

Reference no: EM13580830

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