Reference no: EM132996734

Question - Company A acquired 100% of Company B on January 1, 2013, at a premium to book value and wants to prepare consolidated balance sheet for the combined entity as of December 31, 2013. The financial statements for each individual entity below are for the period ending December 31, 2013:

Income Statement Totals Company A ($) Company B ($)

Sales 400,000 250,000

Cost of Goods Sold (150,000) (100,000)

Depreciation (30,000) (25,000)

Net Income 220,000 125,000

Statement of Retained Earnings

Beginning Balance 230,000 100,000

Net Income 220,000 125,000

Dividends Declared (20,000) (10,000)

Ending Balance 430,000 215,000

Balance Sheet Totals

Cash 20,000 40,000

Accounts Receivable 30,000 25,000

Inventory 60,000 70,000

Investment in Company B 200,000

Land 250,000 300,000

Buildings & Equipment 700,000 220,000

Accumulated Depreciation (450,000) (120,000)

Total Assets 1,110,000 535,000

Accounts Payable 60,000 50,000

Debt Outstanding 300,000 100,000

Common Stock 300,000 170,000

Retained Earnings 430,000 215,000

Required - What will the accumulated depreciation and common stock balances be for the consolidated company at the end of the year?