Daniel Corporation Acquired 100% of the Common Stock of Tysen

question 142

Short Answer

Daniel Corporation acquired 100% of the common stock of Tysen Company for $1,100,000. On the date of acquisition, Tysen Company's stockholders' equity consisted of: Common Stock, $530,000; Retained Earnings, $410,000. The intercompany elimination to be made on a worksheet to prepare a consolidated balance sheet is a.
$\begin{array}{lrr} \text { Common Stock-Tysen } &530,000\\ \text { Retained Earnings-Tysen } &410,000\\ \text {Investment in Tysen Stock } &&940,000\\\end{array}$

b.
$\begin{array}{lrr} \text { Investment in Tysen Stock} &1,100,000\\ \text { Cash } &&1,100,000\\\end{array}$

c.
$\begin{array}{lrr} \text { Common Stock-Daniel.} &530,000\\ \text { Retained Earnings-Daniel } &410,000\\ \text { Goodwill.} &160,000\\ \text {Investment in Tysen Stock } &&1,100,000\\\end{array}$

d.
$\begin{array}{lrr} \text { Common Stock-Tysen } &530,000\\ \text { Retained Earnings-Tysen } &410,000\\ \text {Excess of Cost Over Book Value of Subsidiary } &160,000\\ \text {Investment in Tysen Stock } &&1,100,000\\\end{array}$

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Definitions:

Chinese Exclusion Act

A U.S. federal law signed in 1882 that prohibited the immigration of Chinese laborers for ten years, the first law implementing immigration controls based on ethnicity.

Nations

Large groups of people united by common descent, history, culture, or language inhabiting a particular country or territory.

Chinese Immigrants

Individuals from China who have migrated to various parts of the world, often facing significant challenges and discrimination, especially noted in the 19th and early 20th centuries in the United States.

Persecutions

Systematic mistreatment of an individual or group by another group, often due to political, religious, or ethnic differences.