Question

On June 1, 2014, Puell Company acquired 100% of the stock of Sorrell Inc On this date, Puell had Retained Earnings of $100,000 and Sorrell had Retained Earnings of $50,000.On December 31, 2014, Puell had Retained Earnings of $120,000 and Sorrell had Retained Earnings of $60,000. The amount of Retained Earnings that appeared in the December 31, 2014 consolidated balance sheet was

Answer 1

$120,000

Step-by-step explanation:

Reason: The amount of retained earnings as on 31st December, 2014 in the consolidated balance sheet is $120,000 because, the parent company in the given case is puell co. As it has acquired 100% of the stock. Therefore, as on 31st December 2014 the parents company's retained earnings of $120,000 should appear in the consolidated balance sheet