11 presented below is the balance sheet of hal company at january 1 2015 cash 100 ne 4307818

11 presented below is the balance sheet of hal company at january 1 2015 cash 100 ne 4307818

11) Presented below is the balance sheet of Hal Company at January 1, 2015:

Cash$100

Net Fixed Assets400

Total Assets$500

Accounts Payable$20

Long-term Bonds Payable220

Stockholders' Equity260

Total Liabilities and Stockholders' Equity$500

The balance sheet of Monty Company at January 1, 2015 is below:

Cash$400

Net Fixed Assets380

Total Assets$780

Accounts Payable$120

Long-term Bonds Payable280

Stockholders' Equity380

Total Liabilities and Stockholders' Equity$780

On January 1, 2015, Monty Company acquired 100 percent of the outstanding common stock of Hal Company for $260 cash.  The net income for the year ending December 31, 2015 was $30 for Hal Company.  The net income for the year ending December 31, 2015 was $40 for Monty Company.  There were no intercompany sales.  What is the net income on the consolidated income statement for the year ended December 31, 2015?

A) $0

B) $30

C) $40

D) $70

12) On January 1, 2010, a parent company purchased 100 percent of the stock in a subsidiary.  On January 1, 2010, no goodwill was recorded and the book value of the subsidiary's assets equals the market value of the subsidiary's assets.  On December 31, 2010, the two companies report the following data:

Parent Company Net Income for Past Year$100 million

Subsidiary Company Net Income for Past Year$50 million

What is the consolidated net income for the year ended December 31, 2010?

A) $0

B) $50 million

C) $100 million

D) $150 million

13) The account “Noncontrolling Interests” as reported on a balance sheet shows ________.

A) the parent company's interest in a subsidiary

B) the subsidiary's interest in a parent company

C) the outside stockholders' interest in a subsidiary

D) the outside stockholders' interest in a parent company

14) Elway Company acquired 80 percent of the outstanding stock of Warner Company for $152 cash.  (No goodwill is associated with the acquisition.) Elway Company's assets prior to the acquisition were $700.  Warner Company's assets prior to the acquisition were $400.  What are the total assets on the consolidated balance sheet prepared immediately after the acquisition of Warner Company's stock?  (Assume elimination entries are completed.)

A) $400

B) $700

C) $948

D) $1,100

15) On January 1, 2015, Parent Company acquired 80 percent of the outstanding shares of Subsidiary Company.  At the time of the acquisition, Parent Company's total liabilities were $210.  At the time of the acquisition, Subsidiary Company's total liabilities were $280.  What is the amount of total liabilities on the consolidated balance sheet immediately after the acquisition of Subsidiary Company's stock?  (Assume elimination entries are completed.)

A) $0

B) $280

C) $338

D) $490

16) On January 1, 2015, Jane Company acquired 80 percent of the outstanding shares of Joan Company.  At the time of the acquisition, Jane Company's total stockholders' equity was $420.  At the time of the acquisition, Joan Company's total stockholders' equity was $190.  What is the amount of total stockholders' equity on the consolidated balance sheet immediately after the acquisition of Joan Company's stock?  (Assume elimination entries are completed.)

A) $0

B) $420

C) $458

D) $610

17) On January 1, 2015, Jane Company acquired 80 percent of the outstanding shares of Tarzan Company for $152 in cash.  At the time of the acquisition, Tarzan Company's total assets were $450.  At the time of the acquisition, Tarzan Company's total liabilities were $260.  What is the amount of noncontrolling interests on the consolidated balance sheet immediately after the acquisition of Tarzan Company's stock?  (Assume elimination entries are completed.)

A) $0

B) $38

C) $114

D) $152

18) On January 1, 2015, Julia Company acquired 80 percent of the outstanding shares of Harkins Company for $120.  At the time of the acquisition, Harkins Company's total assets were $550 and total liabilities were $400.  What is the balance in the Investment in Harkins Company account on the consolidated balance sheet immediately after the acquisition of Harkins Company's stock?  (Assume elimination entries are completed.)

A) $0

B) $120

C) $190

D) $440

19) Beck Company owns a 60 percent interest in Subsidiary Company.  For the year ended December 31, 2016, the net income of Beck Company was $80 and the net income of Subsidiary Company was $10.  What is the balance in the Noncontrolling Interests account on the consolidated income statement for the year ending December 31, 2016?

A) $0

B) $4

C) $6

D) $48

20) On January 1, 2010, a parent company purchased 90 percent of the stock in a subsidiary.  On January 1, 2010, no goodwill was recorded and the book value of the subsidiary's assets equals the market value of the subsidiary's assets.  On December 31, 2010, the two companies report the following data:

Parent Company Net Income for Past Year$100 million

Subsidiary Company Net Income for Past Year$50 million

What is the consolidated net income for the year ended December 31, 2010?

A) $100 million

B) $135 million

C) $145 million

D) $150 million

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