On January 1,20X4,Plimsol Company acquired 100 percent of Shipping Corporation's voting shares,at underlying book value.Plimsol accounts for its investment in Shipping at cost.Shipping's retained earnings was $75,000 on the date of acquisition.On December 31,20X4,the trial balance data for the two companies are as follows:

-Based on the information provided,what amount of total assets will be reported in the consolidated balance sheet prepared on December 31,20X4?
A)$425,000
B)$525,000
C)$650,000
D)$630,000

Question

On January 1,20X4,Plimsol Company acquired 100 percent of Shipping Corporation's voting shares,at underlying book value.Plimsol accounts for its investment in Shipping at cost.Shipping's retained earnings was $75,000 on the date of acquisition.On December 31,20X4,the trial balance data for the two companies are as follows:
 
-Based on the information provided,what amount of total assets will be reported in the consolidated balance sheet prepared on December 31,20X4?
A)$425,000 
B)$525,000 
C)$650,000 
D)$630,000

Quizplus · Accepted Answer

The Answer of On January 1,20X4,Plimsol Company acquired 100 percent of Shipping Corporation's voting shares,at underlying book value.Plimsol accounts for its investment in Shipping at cost.Shipping's retained earnings was $75,000 on the date of acquisition.On December 31,20X4,the trial balance data for the two companies are as follows:
 
-Based on the information provided,what amount of total assets will be reported in the consolidated balance sheet prepared on December 31,20X4?
A)$425,000 
B)$525,000 
C)$650,000 
D)$630,000

On January 1,20X4,Plimsol Company Acquired 100 Percent of Shipping Corporation's