Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 20x1, a company acquired 100% of the

On January 1, 20X1, a company acquired 100% of the common stock of a subsidiary...

90.2K

Verified Solution

Question

Accounting

On January 1, 20X1, a company acquired 100% of the common stock of a subsidiary company for $400,000. At the beginning of 20X1, the parent company's retained earnings was $100,000. In 20X1, the parent reported separate operating income of $150,000 and declared dividends of $40,000. The subsidiary reported net income of $80,000 and declared no dividends. The subsidiary's goodwill was deemed to be impaired by $10,000. Calculate the balance of consolidated retained earnings on December 31, 20X1

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students