Treasury Stock Held by Subsidiary
Pool Company purchased 90% of the outstanding common stock of Spruce Company on December 31, 2011, for cash. At that time the balance sheet of Spruce Company was as follows:
|
Current assets |
$1,050,000 |
|
|
Plant and equipment |
990,000 |
|
|
Land |
170,000 |
|
|
Total assets |
$2,210,000 |
|
|
Liabilities |
$ 820,000 |
|
|
Common stock, $20 par value |
900,000 |
|
|
Other contributed capital |
440,000 |
|
|
Retained earnings |
150,000 |
|
|
Total |
2,310,000 |
|
|
Less treasury stock at cost, 5,000 shares |
100,000 |
|
|
Total equities |
$2,210,000 |