Sumtex, a 70%-owned subsidiary of Pumtex, acquired 16% of its outstanding common shares from noncontrolling shareholders for $110,000. The capital accounts of Sumtex immediately before this purchase follow:
Required:
Update the analysis of the Investment account as a result of the subsidiary's acquisition of the noncontrolling interest.

Question

Sumtex, a 70%-owned subsidiary of Pumtex, acquired 16% of its outstanding common shares from noncontrolling shareholders for $110,000. The capital accounts of Sumtex immediately before this purchase follow:
  Required:
Update the analysis of the Investment account as a result of the subsidiary's acquisition of the noncontrolling interest.

Quizplus · Accepted Answer

The Answer of Sumtex, a 70%-owned subsidiary of Pumtex, acquired 16% of its outstanding common shares from noncontrolling shareholders for $110,000. The capital accounts of Sumtex immediately before this purchase follow:
  Required:
Update the analysis of the Investment account as a result of the subsidiary's acquisition of the noncontrolling interest.

Sumtex, a 70%-Owned Subsidiary of Pumtex, Acquired 16% of Its