Presented Below Are the Balance Sheets of Blanco,Inc On January 1,2X13,Stalle Company Acquired 70% of the Outstanding Common

question 23

Multiple Choice

Presented below are the balance sheets of Blanco,Inc.and Stalle Company at January 1,2X13: $\begin{array}{l}\begin{array} { l } &&\text { Dental Works} & &\text { Stalle Company}\\&&\text { Balance Sheet} & &\text { Balance Sheet}\\&&\text { january 1, 2X13} & &\text { january \( 1,2 \times 13 \) }\\\end{array}\\\begin{array} { l } \text { Cash } & \$ 35 \\\text { Net Fixed Assets } &265\\\text { Total Assets } & \$ 300\\\end{array}\begin{array} { l } \text { Cash } & \$250 \\\text { Net Fixed Assets } & \underline{450} \\\text { Total Assets } & \$ 700 \\\end{array}\end{array}$
$\begin{array}{llll}\text { Accounts Payable } & \$ 30 & \text { Accounts Payable } & \$ 90 \\\text { Long-term Bonds Pay. } & 100 & \text { Long-term Bonds Pay. } & 200 \\\text { Stockholders' Equity } & \underline{170} & \text { Equity } & \underline{410} \\ \text { Total Liab. \& Equity } & \$ 300 & \text { Total Liab. \& Equity } & \$ 700 \\\end{array}$ On January 1,2X13,Stalle Company acquired 70% of the outstanding common stock of Blanco,Inc.,for $119 in cash.Assume the book value of Blanco's assets and liabilities equals the market value.
What elimination journal entry will be necessary in order to prepare a consolidated balance sheet immediately after the acquisition?

• A)\(\begin{array}{lll}
• \text { Cash } & 119 \\
• \text { Noncontrolling Interest } & 51 \\
• \quad \text { Investment in Blanco } & & 170 \\
• \end{array}\)
• B)\(\begin{array}{lccc}
• \text { Cash } & 119 \\
• \text { Noncontrolling Interest } & 51 \\
• \quad \text { Stockholders' Equity, Blanco } & & 170
• \end{array}\)
• C)\(\begin{array}{lcl}
• \text { Stockholders' Equity, Blanco } & 170 & \\
• \text { Investment in Blanco Company } & & 115 \\
• \text { Noncontrolling Interest } & & 51 \\
• \end{array}\)
• D)\(\begin{array}{lccc}
• \text { Stockholder's Equity, Blanco } & 119 & \\
• \text { Investment in Blanco Company } & & 119
• \end{array}\)
• E)No journal entry is necessary.

Recognize the role of verb agreement in clear and coherent writing.

Infer the necessity of precise verb usage for effective communication.

Practice the application of grammar rules in the construction of meaningful sentences.

Understand subject-verb agreement.

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