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:

Question

Quizplus · Accepted Answer

The minority interest is calculated as 20% of the net assets of Tarzan Company. Net assets are total assets minus total liabilities, which is $450 - $260 = $190. Therefore, the minority interest is 20% of $190, which is $38.

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