Problem

Balance Sheet ConsolidationOn January 1, 20X3, Guild Corporation reported total assets of...

Balance Sheet Consolidation

On January 1, 20X3, Guild Corporation reported total assets of $470,000, liabilities of $270,000, and stockholders’ equity of $200,000. At that date, Bristol Corporation reported total assets of $190,000, liabilities of $135,000, and stockholders’ equity of $55,000. Following lengthy negotiations, Guild paid Bristol’s existing shareholders $44,000 in cash for 80 percent of the voting common shares of Bristol.

Required

Immediately after Guild purchased the Bristol shares

a. What amount of total assets did Guild report in its balance sheet?


b. What amount of total assets was reported in the consolidated balance sheet?


c. What amount of total liabilities was reported in the consolidated balance sheet?


d. What amount of stockholders’ equity was reported in the consolidated balance sheet?

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