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.

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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.
 
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Quizplus · Accepted Answer

The Answer is D

Vision Corporation Acquired 75 Percent of the Stock of Meta