On January 1,2015,Julia Company acquired 80 percent of the outstanding shares of Harkins Company for $120.At the time of the acquisition,Harkins Company's total assets were $550 and total liabilities were $400.What is the balance in the Investment in Harkins Company account on the consolidated balance sheet immediately after the acquisition of Harkins Company's stock? (Assume elimination entries are completed.)
A)$0
B)$120
C)$190
D)$440

Question

Quizplus · Accepted Answer

In a consolidated balance sheet, the investment in the subsidiary is eliminated against the equity acquired, resulting in a $0 balance for the "Investment in Harkins Company" account.

On January 1,2015,Julia Company Acquired 80 Percent of the Outstanding