Date-Of-Acquisition Eliminating Entries for Questions Are:
[E] [R] Use the Following Information to Answer Questions 31 and 32

Date-of-acquisition eliminating entries for questions are:
[E]
$\begin{array} { | l | l | r | r | } \hline \text { Capital stock } & & 5,000 & \\\hline & \text { Retained deficit } & & 400 \\\hline & \text { Treasury stock } & & 50 \\\hline & \text { Investment in Svedex } & & 3,640 \\\hline & \text { Noncontrolling interest in Svedex } & & 910 \\\hline\end{array}$

[R]
$\begin{array} { | l | l | r | r | } \hline \text { Licensing agreements } & & 24,000 & \\\hline \text { Goodwill } & & 88,450 & \\\hline & \text { Property, net } & & 2,000 \\\hline & \text { Investment in Syedex } & & 91,360 \\\hline & \text { Noncontrolling interest in Syedex } & & 19,090 \\\hline\end{array}$ Use the following information to answer questions 31 and 32:
Pomery Company has a financial relationship with Styro Inc., a separate legal entity, but does not own any of Styro's voting stock. On January 1, 2021, Pomery determines that Styro is a variable interest entity and that Pomery is Styro's prime beneficiary. Sparkle's shareholders' equity on January 1, 2021 is as follows:
Styro's net assets are reported at values approximating fair value, except that its receivables are overvalued by $3,000 and its warranty obligations are undervalued by $1,000. The fair value of Styro at January 1, 2021 is $15,000. Pomery and Styro were not under common control prior to January 1, 2021.
-On a date-of-acquisition consolidation working paper, eliminating entry (R) credits the noncontrolling interest in Svedex in the amount of

A) $20,000
B) $15,450
C) $19,090
D) $18,600