E3-3 multiple-Choice Questions on Consolidated Balances [AICPA Adapted]Select the correct answer for each of the following questions.1. Par Corporation owns 60 percent of Sub Corporations outstanding capital stock. On May 1, 20X8, Par advanced Sub $70,000 in cash, which was still outstanding at December 31, 20X8. What portion of this advance should be eliminated in the preparation of the December 31, 20X8, consolidated balance sheet?a. $70,000. b. $42,000. c. $28,000. d. $0.Items 2 and 3 are based on the following:On January 2, 20X8, Pare Company acquired 75 percent of Kidd Companys outstanding com- mon stock. Selected balance sheet data at December 31, 20X8, are as follows:Total AssetsLiabilities Common Stock Retained EarningsPare Company$420,000$120,000 100,000 200,000$420,000Kidd Company$180,000$ 60,000 50,000 70,000$180,0002. In Pares December 31, 20X8, consolidated balance sheet, what amount should be reported as minority interest in net assets?a. $0. b. $30,000. c. $45,000. d. $105,000.3. In its consolidated balance sheet at December 31, 20X8, what amount should Pare report ascommon stock outstanding? a. $50,000. b. $100,000. c. $137,500.d. $150,000.4. At the time Hyman Corporation became a subsidiary of Duane Corporation, Hyman switched depreciation of its plant assets from the straight-line method to the sum-of-the-years-digits method used by Duane. As to Hyman, this change was aa. Change in an accounting estimate. b. Correction of an error. c.
“I’m trying to write my paper and I’m stuck. Can you help me?”
Yes, we can help you achieve academic success without the uncessary stress of deadlines.
Our reliable essay writing service is a great opportunity for you to save your time and receive the best paper ever.
Plagiarism-free and delivered on time!
We are passionate about delivering quality essays.
Our writers know how to write on any topic and subject area while meeting all of your specific requirements.
Unlike most other services, we will do a free revision if you need us to make corrections even after delivery.