On January 1,20X9,Far Limited purchased 70% of the common shares of Near Limited for $50,400,000.On the date of acquisition,Nears shareholders' equity was as follows:

The fair value of Nears assets on the date of acquisition equalled their carrying value,except for a trademark worth $500,000 that was no on Near's books.The trademark is estimated to have a useful life of 10 years.During the fiscal year ended December 31,20X9,Near earned a net income of $1,700,000,and paid dividends of $800,000.
Required:
What is the non-controlling interest on the consolidated statements of financial position at December 31,20X9?
The company uses the entity approach to calculate goodwill.

Question

On January 1,20X9,Far Limited purchased 70% of the common shares of Near Limited for $50,400,000.On the date of acquisition,Nears shareholders' equity was as follows:
  
The fair value of Nears assets on the date of acquisition equalled their carrying value,except for a trademark worth $500,000 that was no on Near's books.The trademark is estimated to have a useful life of 10 years.During the fiscal year ended December 31,20X9,Near earned a net income of $1,700,000,and paid dividends of $800,000.
Required:
What is the non-controlling interest on the consolidated statements of financial position at December 31,20X9?
The company uses the entity approach to calculate goodwill.

Quizplus · Accepted Answer

The Answer is

Non-controlling interest on common shares at acquisition date 30% × $72,000,000 = $21,600,000
Non-controlling interest,December 31,20X9

On January 1,20X9,Far Limited Purchased 70% of the Common Shares