Cinema Company acquired 70 percent of Movie Corporation's shares on December 31, 20X5, at underlying book value of $98,000. At that date, the fair value of the noncontrolling interest was equal to 30 percent of the book value of Movie Corporation. Movie's balance sheet on January 1, 20X8, contained the following balances: On January 1, 20X8, Movie acquired 5,000 of its own $2 par value common shares from Nonaffiliated Corporation for $6 per share.
Based on the preceding information, what is the increase in the book value of the equity attributable to the parent as a result of the repurchase of shares by Movie Corporation?

Question

Cinema Company acquired 70 percent of Movie Corporation's shares on December 31, 20X5, at underlying book value of $98,000. At that date, the fair value of the noncontrolling interest was equal to 30 percent of the book value of Movie Corporation. Movie's balance sheet on January 1, 20X8, contained the following balances:  On January 1, 20X8, Movie acquired 5,000 of its own $2 par value common shares from Nonaffiliated Corporation for $6 per share.
Based on the preceding information, what is the increase in the book value of the equity attributable to the parent as a result of the repurchase of shares by Movie Corporation?

Quizplus · Accepted Answer

The Answer of Cinema Company acquired 70 percent of Movie Corporation's shares on December 31, 20X5, at underlying book value of $98,000. At that date, the fair value of the noncontrolling interest was equal to 30 percent of the book value of Movie Corporation. Movie's balance sheet on January 1, 20X8, contained the following balances:  On January 1, 20X8, Movie acquired 5,000 of its own $2 par value common shares from Nonaffiliated Corporation for $6 per share.
Based on the preceding information, what is the increase in the book value of the equity attributable to the parent as a result of the repurchase of shares by Movie Corporation?

Cinema Company Acquired 70 Percent of Movie Corporation's Shares on December