Question

X Company acquired 100 percent of Y Company's outstanding common stock for cash. Selected balance sheet data at December 31, 2009, are as follows: X Y Liabilities $144,000 $72,000 Common Stock $120,000 $60,000 Retained $240,000 $84,000 Earnings Total $504,000 $216,000 Based on the preceding information, what amount will X Company report as common stock outstanding in its consolidated balance sheet at December 31, 2009? a. $120,000 b. $156,000 c. $180,000 d. $264,000

          X Company acquired 100 percent of Y
Company's outstanding common stock for
cash. Selected balance sheet data at
December 31, 2009, are as follows:
X
Y
Liabilities
$144,000
$72,000
Common Stock $120,000
$60,000
Retained
$240,000
$84,000
Earnings
Total
$504,000 $216,000
Based on the preceding information, what
amount will X Company report as common
stock outstanding in its consolidated balance
sheet at December 31, 2009?
a. $120,000
b. $156,000
c. $180,000
d. $264,000

X Company acquired 100 percent of Y
Company's outstanding common stock for
cash. Selected balance sheet data at
December 31, 2009, are as follows:
X
Y
Liabilities
144,00072,000
Common Stock 120,00060,000
Retained
240,00084,000
Earnings
Total
504,000216,000
Based on the preceding information, what
amount will X Company report as common
stock outstanding in its consolidated balance
sheet at December 31, 2009?
a. 120,000
b.156,000
c. 180,000
d.264,000

Added by James P.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Bharat Koirala

Step 1

Total assets of X Company = Total assets of Y Company = $72,000 Total liabilities of X Company = Total liabilities of Y Company = $60,000 Show more…

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X Company acquired 100 percent of Y Company's outstanding common stock for cash. Selected balance sheet data at December 31, 2009, are as follows: Y Company: Assets: $72,000 Liabilities: $60,000 Retained Earnings: $84,000 Total: $216,000 Liabilities: $144,000 Common Stock: $120,000 Retained Earnings: $240,000 Total: $504,000 Based on the preceding information, what amount will X Company report as common stock outstanding in its consolidated balance sheet at December 31, 2009? Oa. $120,000 Ob. $156,000 Oc. $180,000 Od. $264,000