Balance sheet information for Pawn Company and its 90%-owned subsidiary, Sox Corporation, at December 31, 20X1, is summarized as follows: Pawn acquired its interest in Sox for cash at book value several years ago when Sox's assets and liabilities were equal to their fair values.
The consolidated balance sheet of Pawn and Sox at December 31, 20X1 will show
A)Investment in Sioux, $558,000.
B)Capital stock, $800,000.
C)Retained earnings, $1,078,000.
D)Noncontrolling interest, $65,000.

Question

Balance sheet information for Pawn Company and its 90%-owned subsidiary, Sox Corporation, at December 31, 20X1, is summarized as follows:  Pawn acquired its interest in Sox for cash at book value several years ago when Sox's assets and liabilities were equal to their fair values.
The consolidated balance sheet of Pawn and Sox at December 31, 20X1 will show
A)Investment in Sioux, $558,000. 
B)Capital stock, $800,000. 
C)Retained earnings, $1,078,000. 
D)Noncontrolling interest, $65,000.

Quizplus · Accepted Answer

The Answer is B

Balance Sheet Information for Pawn Company and Its 90%-Owned Subsidiary