Scenario 3-3 Balance Sheet Information for Pawnee Company and Its 90%-Owned Subsidiary

question 24

Multiple Choice

Scenario 3-3
Balance sheet information for Pawnee Company and its 90%-owned subsidiary, Sioux Corporation, at December 31, 20X1, is summarized as follows:
Pawnee acquired its interest in Sioux for cash at book value several years ago when Sioux's assets and liabilities were equal to their fair values.
-Refer to Scenario 3-3. The consolidated balance sheet of Pawnee and Sioux at December 31, 20X1 will show

• A) Investment in Sioux, $558,000.
• B) Capital stock, $800,000.
• C) Retained earnings, $1,078,000.
• D) Noncontrolling interest, $65,000.

---

Definitions:

Reported Depression

A state of low mood and aversion to activity that has been communicated or documented, often involving feelings of sadness, loneliness, and a lack of interest or pleasure in life.

Native Americans

The indigenous peoples of the United States, including both Native American tribes and Alaska Natives.

European Americans

Individuals in the United States who have ancestry from Europe.

Drug Treatments

The use of medications to prevent, manage, or cure diseases or conditions.