I am reading the FSA book pp 85 and pp 87 for proportionate consolidation and consolidation. It seems to me the numbers on the balance sheets don’t add up correctly. What should be the correct numbers? Thanks
Oops. My bad. The book is correct. This is what I get for Jan 1st 2001 right after acquisition. Does that look right? equity pro con cond Cash 500 650 800 Other current asset 1200 1575 1950 --------------------------------------------- Total current asset 1700 2225 2750 Fixed asset 4250 6225 7975 Investment in XYZ 1000 -------------------------------------------- Total asset 6950 8450 10725 ============================================= Current Liability 1400 1800 2200 Noncurrent Liability 3600 4700 5800 -------------------------------------------- Total Liability 5000 6500 8000 Minority Interest 775 Equity Paid-in Capital 800 800 800 Retained earnings 1150 1150 1150 -------------------------------------------- Total equity 1950 1950 2725 ============================================ Total liab & equity 6950 8450 10725