On January 1, 20X6, Jane Company acquired 80% of the outstanding shares of Tarzan Company for $152 in cash.Tarzan Company's total assets and total liabilities were $450 and $260, respectively.The balance of the minority interest on the consolidated balance sheet immediately after the acquisition of Tarzan Company's stock is _____.
A)$38
B)$152
C)$190
D)$114

Question

Quizplus · Accepted Answer

The minority interest in the consolidated balance sheet represents the portion of Tarzan Company not owned by Jane Company, which is 20% (100% - 80%). The net assets of Tarzan Company at acquisition were $190 ($450 total assets - $260 total liabilities). Therefore, the minority interest is 20% of $190, which equals $38.

On January 1, 20X6, Jane Company Acquired 80% of the Outstanding