The following data pertains to questions
Parent and Sub Inc had the following balance sheets on July 31,2007: The Net Incomes for Parent and Sub Inc for the year ended July 31,2007 were $120,000 and $60,000 respectively.
-What would be the amount of Non-Controlling Interest appearing on the Consolidated Balance Sheet on the date of acquisition,assuming once again that Parent purchased 80% of Sub Inc.for $180,000 under current GAAP?
A)$26,000
B)$86,000
C)$72,000
D)The answer cannot be determined from the information given.

Question

The following data pertains to questions 
Parent and Sub Inc had the following balance sheets on July 31,2007:  The Net Incomes for Parent and Sub Inc for the year ended July 31,2007 were $120,000 and $60,000 respectively.
-What would be the amount of Non-Controlling Interest appearing on the Consolidated Balance Sheet on the date of acquisition,assuming once again that Parent purchased 80% of Sub Inc.for $180,000 under current GAAP?
A)$26,000 
B)$86,000 
C)$72,000 
D)The answer cannot be determined from the information given.

Quizplus · Accepted Answer

Non-Controlling Interest = (Fair Value of Sub Inc. x % of Non-Controlling Interest)= ($180,000 x 20%)= $36,000

The Following Data Pertains to Questions