On January 3, 20X9, Pleat Company acquired 80 percent of Stitch Corporation's common stock for $344,000 in cash. At the acquisition date, the book values and fair values of Stitch's assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 20 percent of the total book value of Stitch. The stockholders' equity accounts of the two companies at the acquisition date are:   Pleat Stitch Common Stock ($5 par value) $ 500,000   $ 200,000   Additional Paid-In Capital   300,000     80,000   Retained Earnings   350,000     150,000   Total Stockholders' Equity $ 1,150,000   $ 430,000   Noncontrolling interest was assigned income of $11,000 in Pleat's consolidated income statement for 20X9. Based on the preceding information, what is the total stockholders' equity in the consolidated balance sheet as of January 3, 20X9?     $1,236,000     $1,150,000     $1,580,000     $1,064,000

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QUESTION 25

  1. On January 3, 20X9, Pleat Company acquired 80 percent of Stitch Corporation's common stock for $344,000 in cash. At the acquisition date, the book values and fair values of Stitch's assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 20 percent of the total book value of Stitch. The stockholders' equity accounts of the two companies at the acquisition date are:


      Pleat Stitch
    Common Stock ($5 par value) $ 500,000   $ 200,000  
    Additional Paid-In Capital   300,000     80,000  
    Retained Earnings   350,000     150,000  
    Total Stockholders' Equity $ 1,150,000   $ 430,000  

    Noncontrolling interest was assigned income of $11,000 in Pleat's consolidated income statement for 20X9.


    Based on the preceding information, what is the total stockholders' equity in the consolidated balance sheet as of January 3, 20X9?
       
    $1,236,000
       
    $1,150,000
       
    $1,580,000
       
    $1,064,000
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