King, Inc. owns 70% of Simmon Co’s outstanding common stock. King’s liabilities total $450,000, and Simmon’s liabilities total $200,000.?

All line items of assets and liabilities of subsidiary should be added item by item to those of parent company and the intercompany transaction should be eliminated in full therefore

the total liabilities in consolidated financial statements is $550,000 ( $450,000 + $200,000-$100,000)

C-590,000 $ Because we add only the percentage of the shares.

C. $590,000 total liability payable