Pops owns 80% of Son Co.’s outstanding common stock. Pops’ liabilities total $350,000, and Son’s liabilities...
Pops owns 80% of Son Co.’s outstanding common stock. Pops’ liabilities total $350,000, and Son’s liabilities total $250,000. During the year, Pops advanced Son $50,000 in cash, which was still outstanding at December 31. What amount of total liabilities should be reported in the consolidated financial statements? A. $550,000 B. $560,000 C. $600,000 D. $650,000
Homework Answers
| Pops’ liabilities | 350000 |
| Add: Son’s liabilities | 250000 |
| Less: Pop's advance | -50000 |
| Total liabilities to be reported | 550000 |
| Option A $550,000 is correct |
Add Answer to:
Pops owns 80% of Son Co.’s outstanding common stock. Pops’
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