On January 1,2012,Packaging International purchased 90% of Shipaway Corporation's outstanding shares for $135,000 when the fair value of Shipaway's net assets were equal to the book values.The balance sheets of Packaging and Shipaway Corporations at year-end 2011 are summarized as follows: If a consolidated balance sheet was prepared immediately after the business combination,the noncontrolling interest would be

Question

On January 1,2012,Packaging International purchased 90% of Shipaway Corporation's outstanding shares for $135,000 when the fair value of Shipaway's net assets were equal to the book values.The balance sheets of Packaging and Shipaway Corporations at year-end 2011 are summarized as follows:  If a consolidated balance sheet was prepared immediately after the business combination,the noncontrolling interest would be

Quizplus · Accepted Answer

C)$135,000 / 90% = $150,000 × 10% = $15,000.

On January 1,2012,Packaging International Purchased 90% of Shipaway Corporation's Outstanding