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On January 1,2004,Plimsol Company Acquired 100 Percent of Shipping Corporation's

question 27

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On January 1,2004,Plimsol Company acquired 100 percent of Shipping Corporation's voting shares,at underlying book value.Plimsol uses the cost method in accounting for its investment in Shipping.Shipping's retained earnings was $75,000 on the date of acquisition.On December 31,2004,the trial balance data for the two companies are as follows:
On January 1,2004,Plimsol Company acquired 100 percent of Shipping Corporation's voting shares,at underlying book value.Plimsol uses the cost method in accounting for its investment in Shipping.Shipping's retained earnings was $75,000 on the date of acquisition.On December 31,2004,the trial balance data for the two companies are as follows:    -Based on the information provided,what amount of retained earnings will be reported in the consolidated balance sheet prepared on December 31,2004? A) $235,000 B) $210,000 C) $310,000 D) $225,000
-Based on the information provided,what amount of retained earnings will be reported in the consolidated balance sheet prepared on December 31,2004?


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