Plunk Corporation currently holds a 75 percent interest in Spelt Industries and reports the noncontrolling interest in Spelt at $3,500,000 in the equity section of its balance sheet. Plunk pays $4,000,000 in cash to acquire the remaining 25 percent interest in Spelt.
Required
Prepare Plunk's journal entry to record acquisition of the noncontrolling interest in Spelt.

Question

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The Answer of Plunk Corporation currently holds a 75 percent interest in Spelt Industries and reports the noncontrolling interest in Spelt at $3,500,000 in the equity section of its balance sheet. Plunk pays $4,000,000 in cash to acquire the remaining 25 percent interest in Spelt.
Required
Prepare Plunk's journal entry to record acquisition of the noncontrolling interest in Spelt.

Plunk Corporation Currently Holds a 75 Percent Interest in Spelt