Pob Corporation acquired an 80 percent interest in Sof Corporation on January 2, 2011, for $2,800,000. On this date the capital stock and retained earnings of the two companies were as follows (in...

Pob Corporation acquired an 80 percent interest in Sof Corporation on January 2, 2011, for $2,800,000. On this date the capital stock and retained earnings of the two companies were as follows (in thousands): PobSof Capital stock ……………… $7,200 …………….. $2,000 Retained earnings ………….. 3,200 ………………… 400 The assets and liabilities of Sof were stated at fair values equal to book values when Pob acquired its 80 percent interest. Pob uses the equity method to account for its investment in Sof. Net income and dividends for 2011 for the affiliated companies were as follows: Pob Sof Net income ……………………………………….. $1,200 ………………. $360 Dividends declared ………………………………….. 720 ……………….. 200 Dividends payable December 31, 2011 ……………… 360 ……………….. 100 REQUIRED Calculate the amounts at which the following items should appear in the consolidated balance sheet on December 31, 2011. 1. Capital stock 2. Goodwill 3. Consolidated retained earnings 4. Noncontrolling interest 5. Dividends payable View Solution:

Pob Corporation acquired an 80 percent interest in Sof Corporation