On January 1, 2015, the Husky Corporation purchased 90% of the Spartan Company's voting stock for $2,700,000. Spartan's net assets had a book value of $2,450,000; the fair value of Spartan's building was $325,000 greater than its book value. The book value of Husky's net assets immediately after the acquisition of Spartan totaled $6,850,000. Husky used the acquisition method to prepare its consolidated balance sheet.
-What is total stockholders' equity on the January 1,2015 consolidated balance sheet?
A) $9,300,000
B) $6,850,000
C) $7,150,000
D) $7,120,000
Correct Answer:
Verified
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