Vision Corporation acquired 75 percent of the stock of Meta Company on January 1, 20X7, for $225,000.At that date, the fair value of the noncontrolling interest was $75,000. Meta's balance sheet contained the following amounts at the time of the combination: During each of the next three years, Meta reported net income of $30,000 and paid dividends of $10,000. On January 1, 20X9, Vision sold 1,500 shares of Meta's $10 par value shares for $60,000 in cash. Vision used the fully adjusted equity method in accounting for its ownership of Meta Company.
Based on the preceding information, in the journal entry recorded by Vision for sale of shares:

Question

Vision Corporation acquired 75 percent of the stock of Meta Company on January 1, 20X7, for $225,000.At that date, the fair value of the noncontrolling interest was $75,000. Meta's balance sheet contained the following amounts at the time of the combination:  During each of the next three years, Meta reported net income of $30,000 and paid dividends of $10,000. On January 1, 20X9, Vision sold 1,500 shares of Meta's $10 par value shares for $60,000 in cash. Vision used the fully adjusted equity method in accounting for its ownership of Meta Company.
Based on the preceding information, in the journal entry recorded by Vision for sale of shares:

Quizplus · Accepted Answer

The Answer is B

Vision Corporation Acquired 75 Percent of the Stock of Meta