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Question - Mr. Wilson own 100% of the common stock of ABC Corp. and 80% of the common stock of DEF Corp. ABC previously paid $6,000 for the remaining 20% interest in DEF. The condensed December 31, year 1 balance sheets of ABC and DEF are as follows:
ABC DEF
Assets $500,000 $50,000
Liabilities $200,000 $20,000
Common stock $140,000 $10,000
Retained earnings $160,000 $20,000
$500,000 $50,000
In a combined balance sheet of the two corporations at December 31, year 1, what amount should be reported as total stockholders' equity?
a. $430,000
b. $426,000
c. $403,000
d. $400,000
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