Perri Company buys 80 percent of the stock of McGrath Company for $150,000 . McGrath Company has contributed capital of $100,000 and retained earnings of $60,000 . The eliminating entry that would appear on the work sheet for consolidating the balance sheets of two companies is:
a. Common Stock(McGrath) 100,000
Retained Earnings(McGrath) 60,000
Goodwill 22,000
Investment in McGrath Company(Perri) 150,000
Minority Interest 32,000
b. Common Stock(McGrath) 100,000
Retained Earnings(McGrath) 60,000
Investment in McGrath Company(Perri) 160,000
c. Common Stock(McGrath) 100,000
Retained Earnings(McGrath) 60,000
Investment in McGrath Company(Perri) 150,000
Minority Interest 10,000
d. Common Stock(McGrath) 100,000
Retained Earnings(McGrath) 60,000
Goodwill 22,000
Investment in McGrath Company(Perri) 182,000
A
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