Balance Sheet Information for Pawn Company and Its 90%-Owned Subsidiary

question 16

Multiple Choice

Balance sheet information for Pawn Company and its 90%-owned subsidiary, Sox Corporation, at December 31, 2016, is summarized as follows:
$\begin{array}{lrr}\text { Current assets-net } & \$ 200,000 & \$ 50,000 \\\text { Property, plant, and equipment-net } & 1,000,000 & 600,000 \\\text { Investment in Sox } &558,000 \\&\$ 1,758,000 & \$ 650,000\\\\\text { Current liabilities } & \$ 100,000 & \$ 30,000 \\\text { Capital stock } & 800,000 & 400,000 \\\text { Retained earnings } & 858,000 & 220,000 \\& \$ 1,758,000 & \$ 650,000\end{array}$
Pawn acquired its interest in Sox for cash at book value several years ago when Sox's assets and liabilities were equal to their fair values.

Consolidated total assets of Pawn and Sox, at December 31, 2016, will be ____.

• A)$1,785,000
• B)$1,850,000
• C)$2,343,000
• D)$2,408,000

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Definitions:

Work Environment

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Skills Approach

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Large Number of Components

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Specific Skills

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