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 elimination entries to complete a full consolidation worksheet for 20X9,noncontrolling interest in the net income of Meta Co.will be credited for:

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 elimination entries to complete a full consolidation worksheet for 20X9,noncontrolling interest in the net income of Meta Co.will be credited for:

Quizplus · Accepted Answer

Noncontrolling interest is credited for the amount of its share of the net income of the subsidiary, which is $12,000 (50% x $24,000).

Vision Corporation Acquired 75 Percent of the Stock of Meta