On January 1,2008,Wilhelm Corporation acquired 90 percent of Kaiser Company's voting stock,at underlying book value.The fair value of the noncontrolling interest was equal to 10 percent of the book value of Kaiser at that date.Wilhelm uses the equity method in accounting for its ownership of Kaiser.On December 31,2009,the trial balances of the two companies are as follows:

-Based on the preceding information,what amount would be reported as total assets in the consolidated balance sheet at December 31,2009?

Question

On January 1,2008,Wilhelm Corporation acquired 90 percent of Kaiser Company's voting stock,at underlying book value.The fair value of the noncontrolling interest was equal to 10 percent of the book value of Kaiser at that date.Wilhelm uses the equity method in accounting for its ownership of Kaiser.On December 31,2009,the trial balances of the two companies are as follows:
 
-Based on the preceding information,what amount would be reported as total assets in the consolidated balance sheet at December 31,2009?

Quizplus · Accepted Answer

The correct amount for total assets in the consolidated balance sheet is $742,000, as this figure accurately reflects the combined assets of the entities involved after eliminating intercompany transactions and adjustments.

On January 1,2008,Wilhelm Corporation Acquired 90 Percent of Kaiser Company's