On January 1,2015,Jane Company acquired 80 percent of the outstanding shares of Tarzan Company for $152 in cash.At the time of the acquisition,Tarzan Company's total assets were $450.At the time of the acquisition,Tarzan Company's total liabilities were $260.What is the amount of noncontrolling interests on the consolidated balance sheet immediately after the acquisition of Tarzan Company's stock? (Assume elimination entries are completed.)

Question

Quizplus · Accepted Answer

The noncontrolling interest is calculated as 20% of the fair value of Tarzan Company's net assets at the acquisition date. Net assets are total assets ($450) minus total liabilities ($260), which equals $190. Therefore, the noncontrolling interest is 20% of $190, which is $38.

On January 1,2015,Jane Company Acquired 80 Percent of the Outstanding