Potter Company acquired 90 percent of the voting common shares of Stately Corporation by issuing bonds with a par value and fair value of $121,500 to Stately's existing shareholders

Accounting Mar 06, 2021

Potter Company acquired 90 percent of the voting common shares of Stately Corporation by issuing bonds with a par value and fair value of $121,500 to Stately's existing shareholders. Immediately prior to the acquisition, Potter reported total assets of $510,000, liabilities of $320,000, and stockholders' equity of $190,000. At that date, Stately reported total assets of $350,000, liabilities of $215,000, and stockholders’ equity of $135,000.

Required:

Immediately after Potter acquired Stately's shares

a.	What amount of total assets did Potter report in its individual balance sheet?

b.	What amount of total assets was reported in the consolidated balance sheet?

c.	What amount of total liabilities was reported in the consolidated balance sheet?

d.	What amount of stockholders' equity was reported in the consolidated balance sheet?

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