On January 1, 20X6, Jane Company acquired 80% of the outstanding shares of Pauley Company for $152 in cash. The stockholders' equity accounts of Jane Company and Pauley Company were $420 and $190, respectively. The balance in stockholders' equity on the consolidated balance sheet immediately after the acquisition of Pauley Company's stock is:

Question

Quizplus · Accepted Answer

The consolidated stockholders' equity is the parent's equity, which is $420, as the subsidiary's equity is not included in the consolidated equity.

On January 1, 20X6, Jane Company Acquired 80% of the Outstanding