Passerby International purchased 80% of Standaround Company's outstanding common stock for $200,000 on January 2, 2011.At that time, the fair value of Standaround's net assets were equal to the book values.The balance sheets of Passerby and Standaround at January 2, 2011 are summarized as follows:
Required: Determine the consolidated balances as of January 2, 2011 for the following five balance sheet line items: Goodwill, Liabilities, Capital Stock, Retained Earnings, and Noncontrolling Interest.

Question

Passerby International purchased 80% of Standaround Company's outstanding common stock for $200,000 on January 2, 2011.At that time, the fair value of Standaround's net assets were equal to the book values.The balance sheets of Passerby and Standaround at January 2, 2011 are summarized as follows:
  Required: Determine the consolidated balances as of January 2, 2011 for the following five balance sheet line items: Goodwill, Liabilities, Capital Stock, Retained Earnings, and Noncontrolling Interest.

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The Answer of Passerby International purchased 80% of Standaround Company's outstanding common stock for $200,000 on January 2, 2011.At that time, the fair value of Standaround's net assets were equal to the book values.The balance sheets of Passerby and Standaround at January 2, 2011 are summarized as follows:
  Required: Determine the consolidated balances as of January 2, 2011 for the following five balance sheet line items: Goodwill, Liabilities, Capital Stock, Retained Earnings, and Noncontrolling Interest.

Passerby International Purchased 80% of Standaround Company's Outstanding Common Stock