On January 1,20X8,Potter Corporation acquired 90 percent of Shoemaker 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 Shoemaker at that date.Potter uses the fully adjusted equity method in accounting for its ownership of Shoemaker.On December 31,20X9,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 31,20X9?
A)$805,000
B)$712,000
C)$742,000
D)$1,102,000

Question

On January 1,20X8,Potter Corporation acquired 90 percent of Shoemaker 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 Shoemaker at that date.Potter uses the fully adjusted equity method in accounting for its ownership of Shoemaker.On December 31,20X9,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 31,20X9?
A)$805,000 
B)$712,000 
C)$742,000 
D)$1,102,000

Quizplus · Accepted Answer

The Answer is C

On January 1,20X8,Potter Corporation Acquired 90 Percent of Shoemaker Company's