Answer:
The below part of the question is missing
The stockholders' equity accounts of the two companies at the acquisition date are: PLEAT: Common Stock ($5 par) $500,000; Additional Paid-in capital $300,000; Retained Earnings $350,000. STITCH: Common Stock ($5 par) $200,000; Additional Paid-in capital $80,000; Retained Earnings $150,000. Non-controlling interest was assigned income of $11,000 in Pleat's consolidated income statement for 20X9. Based on the preceding information
$1,580,000
$1,064,000
$1,150,000
$1,236,000
The last option $ 1,236,000 is correct
Explanation:
The stockholders' equity accounts of the two companies(consolidated accounts) at acquisition date is the total stockholders' equity of Pleat plus the non-controlling interest in Stitch
The stockholders' equity in Pleat=$500,000+$300,000+$350,000=$1,150,000
Non-controlling interest in Stitch=book value*20%=($200,000+$80,000+$150,000)*20%=$86000
Total stockholders' equity =$1,150,000+$86,000
=$ 1,236,000.00
