On December 31,20X8,Pancake Company acquired controlling ownership of Syrup Company.A consolidated balance sheet was prepared immediately.Partial balance sheet data for the two companies and the consolidated entity at that date follow:
During 20X8,Pancake Company provided consulting services to Syrup Company and has not yet paid for them.There were no other receivables or payables between the companies at December 31,20X8.
-Based on the information given,what amount will be reported as total controlling interest in the consolidated balance sheet?
A)$254,000
B)$285,000
C)$364,000
D)$395,000

Question

On December 31,20X8,Pancake Company acquired controlling ownership of Syrup Company.A consolidated balance sheet was prepared immediately.Partial balance sheet data for the two companies and the consolidated entity at that date follow:
  During 20X8,Pancake Company provided consulting services to Syrup Company and has not yet paid for them.There were no other receivables or payables between the companies at December 31,20X8.
-Based on the information given,what amount will be reported as total controlling interest in the consolidated balance sheet?
A)$254,000 
B)$285,000 
C)$364,000 
D)$395,000

Quizplus · Accepted Answer

The total controlling interest in the consolidated balance sheet is the sum of the parent company's equity and its share of the subsidiary's net assets post-acquisition. If the information provided indicates that this sum equals $254,000, then that is the correct amount to report.

On December 31,20X8,Pancake Company Acquired Controlling Ownership of Syrup Company