Use the following information to answer bellow Questions
A company issues new stock with a fair value of $120,000 to acquire 85% of the stock of another company. The fair value of the noncontrolling interest at the date of acquisition is $19,000, and the book value of the acquired company is $15,000. The subsidiary's net assets are reported at amounts approximating fair value at the date of acquisition, except that its plant assets are overvalued by $25,000, its reported license agreements are undervalued by $30,000, and it has previously unreported identifiable intangible assets with a fair value of $50,000.
-At what value does the noncontrolling interest appear on the date-of-acquisition consolidated balance sheet, following U.S. GAAP?

Question

Use the following information to answer bellow Questions 
A company issues new stock with a fair value of $120,000 to acquire 85% of the stock of another company. The fair value of the noncontrolling interest at the date of acquisition is $19,000, and the book value of the acquired company is $15,000. The subsidiary's net assets are reported at amounts approximating fair value at the date of acquisition, except that its plant assets are overvalued by $25,000, its reported license agreements are undervalued by $30,000, and it has previously unreported identifiable intangible assets with a fair value of $50,000.
-At what value does the noncontrolling interest appear on the date-of-acquisition consolidated balance sheet, following U.S. GAAP?

Quizplus · Accepted Answer

The noncontrolling interest is valued at its fair value at the date of acquisition.

Use the Following Information to Answer Bellow Questions