Elway Company acquired 80% of the outstanding shares of Warner Company for $152 in cash. Elway Company's assets prior to the acquisition were $700. Warner Company's assets prior to the acquisition were $400. The total assets that would appear on the consolidated balance sheet prepared immediately after the acquisition of Warner Company's stock is:

Question

Quizplus · Accepted Answer

Elway Company acquired 80% of Warner Company's shares for $152, which represents 80% of Warner Company's $190 net assets ($400 - $210). Therefore, the consolidated balance sheet will include $152 of goodwill, resulting in total assets of $948 ($700 + $152 + $80).

Elway Company Acquired 80% of the Outstanding Shares of Warner