Multiple Choice
On January 1,20X4,Plimsol Company acquired 100 percent of Shipping Corporation's voting shares,at underlying book value.Plimsol accounts for its investment in Shipping at cost.Shipping's retained earnings was $75,000 on the date of acquisition.On December 31,20X4,the trial balance data for the two companies are as follows:
-Based on the information provided,what amount of total liabilities will be reported in the consolidated balance sheet prepared on December 31,20X4?
A) $525,000
B) $115,000
C) $125,000
D) $190,000
Correct Answer:
Verified
Correct Answer:
Verified
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