On January 1,20X6,Power Company acquired 80 percent of Strong Company's outstanding stock for cash.The fair value of the noncontrolling interest was equal to a proportionate share of the book value of Strong Company's net assets at the date of acquisition.Selected balance sheet data at December 31,20X6 are as follows:

-Based on the preceding information,what amount will Power Company report as common stock outstanding in its consolidated balance sheet at December 31,20X6?
A)$214,000
B)$150,000
C)$184,000
D)$230,000

Question

On January 1,20X6,Power Company acquired 80 percent of Strong Company's outstanding stock for cash.The fair value of the noncontrolling interest was equal to a proportionate share of the book value of Strong Company's net assets at the date of acquisition.Selected balance sheet data at December 31,20X6 are as follows:
 
-Based on the preceding information,what amount will Power Company report as common stock outstanding in its consolidated balance sheet at December 31,20X6?
A)$214,000 
B)$150,000 
C)$184,000 
D)$230,000

Quizplus · Accepted Answer

The correct amount for common stock outstanding reported in the consolidated balance sheet would be based on the information provided earlier, which isn't visible in this question. However, assuming choice B is correct, it means that the company will report $150,000 as common stock outstanding. This figure is derived from specific details about the company's issued stock and any transactions affecting common stock during the period up to December 31, 20X6.

On January 1,20X6,Power Company Acquired 80 Percent of Strong Company's