Mr. and Mrs. Gasson own 100% of the common stock of Able Corp. and 90% of the common stock of Baker Corp. Able previously paid $4,000 for the remaining 10% interest in Baker. The condensed December 31, 2006 balance sheets of Able and Baker are as follows:
|
Able |
Baker |
|
|
Assets |
$600,000 |
$60,000 |
|
Liabilities |
$200,000 |
$30,000 |
|
Common stock |
100,000 |
20,000 |
|
Retained earnings |
300,000 |
10,000 |
|
$600,000 |
$60,000 |
In a combined balance sheet of the two corporations at December 31, 2006, what amount should be reported as total stockholders’ equity?
- $430,000
- $426,000
- $403,000
- $400,000