Based on the preceding information what amount would be

Assignment Help Accounting Basics

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

Questions Cloud

Smoky mountain corporation makes two types of hiking : smoky mountain corporation makes two types of hiking bootsu2014xtreme and the pathfinder. data concerning these two

A point charge with q1 28 c is located at x 30 m y 0 and : a point charge with q1 2.8 c is located at x ?3.0 m y 0 and a second point charge with q2 4.4 c is at x 1.0 m y

Problem -at the end of the year johnson manufacturing ended : i. cost classifications fleet company manufactures shoes. label each item as to the type of costnbspnbspdm dl mo or p

Fogerty company makes two products titanium hubs and : fogerty company makes two products titanium hubs and sprockets. data regarding the two products followdirect

Based on the preceding information what amount would be : on january 1 2008 wilhelm corporation acquired 90 percent of kaiser companys voting stock at underlying book value. the

Aug 31submit and record your bill for the accounting : aug 31?submit and record your bill for the accounting services for the month to set up the records for jens tennis

Cabinets inc is a large manufacturer of modular kitchen : cabinets inc. is a large manufacturer of modular kitchen cabinets sold primarily to builders and developers. the

The following information reflects cash flow and other : the following information reflects cash flow and other activities of framer company for six months ended june 30 paid

Forty percent of fixed manufacturing overhead consists of : during heaton companys first two years of operations the company reported absorption costing net operating income as

User Account

All Pages