Based on the following information, what amount will be presented for current assets on the consolidated balance sheet of Investor for its wholly owned subsidiary? $$\begin{array} { | l | r | r | }
\hline & \text { Investor } & \text { Investee } \
\hline \text { Current assets } & \$ 500 & \$ 550 \
\hline \text { Long-term assets } & 300 & 50 \
\hline \text { Investment in investee } & 200 & 0 \
\hline \text { Current liabilities } & 350 & 200 \
\hline \text { Long-term liabilities } & 450 & 300 \
\hline \text { Equity } & 200 & 100 \
\hline
\end{array}$$
A)$300
B)$500
C)$550
D)$1,050

Question

Based on the following information, what amount will be presented for current assets on the consolidated balance sheet of Investor for its wholly owned subsidiary? $$\begin{array} { | l | r | r | } 
\hline & \text { Investor } & \text { Investee } \
\hline \text { Current assets } & \$ 500 & \$ 550 \
\hline \text { Long-term assets } & 300 & 50 \
\hline \text { Investment in investee } & 200 & 0 \
\hline \text { Current liabilities } & 350 & 200 \
\hline \text { Long-term liabilities } & 450 & 300 \
\hline \text { Equity } & 200 & 100 \
\hline
\end{array}$$
A)$300
B)$500
C)$550
D)$1,050

Quizplus · Accepted Answer

In a consolidation, the parent company (Investor) combines its financial statements with those of its wholly owned subsidiary (Investee). For current assets, this means adding the current assets of the Investor ($500) to the current assets of the Investee ($550), resulting in a total of $1,050 for current assets on the consolidated balance sheet.

Based on the Following Information, What Amount Will Be Presented