On January 2, 2007, Pare Co. purchased 75% of Kidd Co.’s outstanding common stock. Selected balance sheet data at December 31, 2007, is as follows:

Pare

Kidd

Total assets

$420,000

$180,000

Liabilities

$120,000

$ 60,000

Common stock

100,000

50,000

Retained earnings

200,000

70,000

$420,000

$180,000

During 2007 Pare and Kidd paid cash dividends of $25,000 and $5,000, respectively, to their shareholders. There were no other intercompany transactions.

In its December 31, 2007 consolidated statement of retained earnings, what amount should Pare report as dividends paid?

$ 5,000
$25,000
$26,250
$30,000
In Pare’s December 31, 2007 consolidated balance sheet, what amount should be reported as minority interest in net assets?

$0
$ 30,000
$ 45,000
$105,000
In its December 31, 2007 consolidated balance sheet, what amount should Pare report as common stock?

$ 50,000
$100,000
$137,500
$150,000