Based on the following information, what amount will be presented for "investment in investee" on the consolidated balance sheet of Spenser 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)$0
B)$200
C)$300
D)$600

Question

Based on the following information, what amount will be presented for "investment in investee" on the consolidated balance sheet of Spenser 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)$0
B)$200
C)$300
D)$600

Quizplus · Accepted Answer

In a consolidated balance sheet for a wholly owned subsidiary, the "investment in investee" line item is eliminated and replaced with the assets and liabilities of the subsidiary. Therefore, the amount presented for "investment in investee" would be $0.

Based on the Following Information, What Amount Will Be Presented