On January 1,20X4,Plimsol Company acquired 100 percent of Shipping Corporation's voting shares,at underlying book value.Plimsol accounts for its investment in Shipping at cost.Shipping's retained earnings was $75,000 on the date of acquisition.On December 31,20X4,the trial balance data for the two companies are as follows:

-Based on the information provided,what amount of total stockholders' equity will be reported in the consolidated balance sheet prepared on December 31,20X4?

Question

On January 1,20X4,Plimsol Company acquired 100 percent of Shipping Corporation's voting shares,at underlying book value.Plimsol accounts for its investment in Shipping at cost.Shipping's retained earnings was $75,000 on the date of acquisition.On December 31,20X4,the trial balance data for the two companies are as follows:
 
-Based on the information provided,what amount of total stockholders' equity will be reported in the consolidated balance sheet prepared on December 31,20X4?

Quizplus · Accepted Answer

The total stockholders' equity in a consolidated balance sheet is the sum of the parent company's equity and the equity of any subsidiaries it owns, minus any minority interest. Without specific numbers provided for these components, it's not possible to calculate the exact amount. However, if this is the correct answer based on the information given (which is not visible in the question), it suggests that the total calculated or given stockholders' equity for the consolidated balance sheet is $335,000.

On January 1,20X4,Plimsol Company Acquired 100 Percent of Shipping Corporation's