Items 1 through 3 are based on the following:
On January 2, 2007, Pare Co. purchased 75% of Kidd Co.’s outstanding common stock. Selected balance sheet data at December 31, 2007, is as follows:
|
Pare |
Kidd |
||
|
Total assets |
$420,000 |
$180,000 |
|
|
Liabilities |
$120,000 |
$ 60,000 |
|
|
Common stock |
100,000 |
50,000 |
|
|
Retained earnings |
200,000 |
70,000 |
|
|
$420,000 |
$180,000 |
||
During 2007 Pare and Kidd paid cash dividends of $25,000 and $5,000, respectively, to their shareholders. There were no other intercompany transactions.
In its December 31, 2007 consolidated statement of retained earnings, what amount should Pare report as dividends paid?
- $ 5,000
- $25,000
- $26,250
- $30,000
In Pare’s December 31, 2007 consolidated balance sheet, what amount should be reported as minority interest in net assets?
- $0
- $ 30,000
- $ 45,000
- $105,000
In its December 31, 2007 consolidated balance sheet, what amount should Pare report as common stock?
- $ 50,000
- $100,000
- $137,500
- $150,000