On January 2,20X2,Piranha Company acquired 70 percent of Salmon Corporation's common stock for $420,000 cash.At the acquisition date,the book values and fair values of Salmon' assets and liabilities were equal,and the fair value of the noncontrolling interest was equal to 30 percent of the total book value of Salmon.The stockholders' equity accounts of the two companies at the acquisition date are as follows:
Noncontrolling interest was assigned income of $15,000 in Piranha's consolidated income statement for 20X2.
-Based on the preceding information,what amount will be assigned to noncontrolling interest on January 2,20X2,in the consolidated balance sheet?
A)$120,000
B)$126,000
C)$180,000
D)$420,000

Question

On January 2,20X2,Piranha Company acquired 70 percent of Salmon Corporation's common stock for $420,000 cash.At the acquisition date,the book values and fair values of Salmon' assets and liabilities were equal,and the fair value of the noncontrolling interest was equal to 30 percent of the total book value of Salmon.The stockholders' equity accounts of the two companies at the acquisition date are as follows:
  Noncontrolling interest was assigned income of $15,000 in Piranha's consolidated income statement for 20X2.
-Based on the preceding information,what amount will be assigned to noncontrolling interest on January 2,20X2,in the consolidated balance sheet?
A)$120,000 
B)$126,000 
C)$180,000 
D)$420,000

Quizplus · Accepted Answer

The Answer of On January 2,20X2,Piranha Company acquired 70 percent of Salmon Corporation's common stock for $420,000 cash.At the acquisition date,the book values and fair values of Salmon' assets and liabilities were equal,and the fair value of the noncontrolling interest was equal to 30 percent of the total book value of Salmon.The stockholders' equity accounts of the two companies at the acquisition date are as follows:
  Noncontrolling interest was assigned income of $15,000 in Piranha's consolidated income statement for 20X2.
-Based on the preceding information,what amount will be assigned to noncontrolling interest on January 2,20X2,in the consolidated balance sheet?
A)$120,000 
B)$126,000 
C)$180,000 
D)$420,000

On January 2,20X2,Piranha Company Acquired 70 Percent of Salmon Corporation's