Holding Company. Usry Company

Holding Company. Usry Company holds stock in company A and company B and possesses voting control over both. Balance sheet data follow:

Usry Corporation

Investment                        Long-term liabilities                       $ 30,000

Company A                         $ 20,000               Preferred stock                               10,000

Company B                         80,000                   Common stock equity    60,000

Total                                      $100,000              Total                                      $100,000

Company A

Current assets   $200,000              Current liabilities              $100,000

Noncurrent assets 300,000          Long-term liabilities        200,000

                                                                common stock equity    200,000

Total                      $500,000             Total      $500,000

Company B

Current assets   $300,000             Current liabilities              $200,000

Noncurrent assets 400,000          Long-term liabilities        350,000

Common stock equity    150,000

Total                      $700,000             Total                     $700,000

(a) What is the percent of total assets controlled by Usry Corporation resulting from its common stock equity? (b) Assuming another company owns 25 percent of the common stock of Usry and has voting control, what is the percent of the total assets controlled by the other firm’s equity?

Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount

Posted in Uncategorized