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Question - 1/1/2020, Co. X acquired 75% of the voting stock of Co. Y at a cost of $185,000. At the date of acquisition, the capital stock of Co. X and Co. Y was $400,000 and $130,000, respectively. What is the capital stock balance that would appear on the consolidated balance sheet at the date of acquisition?
A-$400,000
B-$530,000
C-$185,000
D-$497,500
Short and Bain had capital accounts of $20,000 and $80,000, Determine the amount distributed to Bain, assuming that Short is unable to satisfy the deficiency
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