None On January 1, 2016, Pamela Company purchased 75% of the common stock of Snicker Company. Separate balance sheet data for the companies at the combination date are given below:SnickerSnickerCo.Co.Pamela Co.BookValuesFairValuesCashAccounts receivable$ 18,000$155,000$155,000108,00020,00020,000Inventory99,00026,00045,000Land60,00024,00045,000Plant assets525,000225,000300,000Acc. depreciation(180,000)(45,000)Investment in Snicker330,000CoTotal assets$960,000$405,000$565,000Accounts payable$156,000$105,000$105,000Capital stock600,000225,000Retained earnings204,00075,000Total liabilities &equities$960,000$405,000Determine below what the consolidated balance would be for each of the requested accounts on January 2, 2016.What is the amount of consolidated retained earnings?a. $204,000O b. $209,250Oc $260,250O d. $279,000

To determine the consolidated retained earnings after Pamela Company's acquisition of 75% of Snicker…

Answered: On January 1, 2016, Pamela Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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