Vision Corporation acquired 75 percent of the stock of Meta Company on January 1, 20X7, for $225,000. At that date, the fair value of the noncontrolling interest was $75,000. Meta's balance sheet contained the following amounts at the time of the combination:
During each of the next three years, Meta reported net income of $30,000 and paid dividends of $10,000. On January 1, 20X9, Vision sold 1,500 shares of Meta's $10 par value shares for $60,000 in cash. Vision used the fully adjusted equity method in accounting for its ownership of Meta Company.

-Based on the preceding information,in the journal entry recorded by Vision for sale of shares:

Question

Vision Corporation acquired 75 percent of the stock of Meta Company on January 1, 20X7, for $225,000. At that date, the fair value of the noncontrolling interest was $75,000. Meta's balance sheet contained the following amounts at the time of the combination:
During each of the next three years, Meta reported net income of $30,000 and paid dividends of $10,000. On January 1, 20X9, Vision sold 1,500 shares of Meta's $10 par value shares for $60,000 in cash. Vision used the fully adjusted equity method in accounting for its ownership of Meta Company.
 
-Based on the preceding information,in the journal entry recorded by Vision for sale of shares:

Quizplus · Accepted Answer

The investment in Meta Stock is credited for $51,000, which represents the cost of the shares sold.

Vision Corporation Acquired 75 Percent of the Stock of Meta