Play Company acquired 70 percent of Screen Corporation's shares on December 31,20X5,at underlying book value of $98,000.At that date,the fair value of the noncontrolling interest was equal to 30 percent of the book value of Screen Corporation.Screen's balance sheet on January 1,20X8,contained the following balances:
On January 1,20X8,Screen acquired 5,000 of its own $2 par value common shares from Nonaffiliated Corporation for $6 per share.
-Based on the preceding information,what will be the journal entry to be recorded on Play Company's books to recognize the change in the book value of the shares it holds?

Question

Play Company acquired 70 percent of Screen Corporation's shares on December 31,20X5,at underlying book value of $98,000.At that date,the fair value of the noncontrolling interest was equal to 30 percent of the book value of Screen Corporation.Screen's balance sheet on January 1,20X8,contained the following balances:
  On January 1,20X8,Screen acquired 5,000 of its own $2 par value common shares from Nonaffiliated Corporation for $6 per share.
-Based on the preceding information,what will be the journal entry to be recorded on Play Company's books to recognize the change in the book value of the shares it holds?

Quizplus · Accepted Answer

The Answer of Play Company acquired 70 percent of Screen Corporation's shares on December 31,20X5,at underlying book value of $98,000.At that date,the fair value of the noncontrolling interest was equal to 30 percent of the book value of Screen Corporation.Screen's balance sheet on January 1,20X8,contained the following balances:
  On January 1,20X8,Screen acquired 5,000 of its own $2 par value common shares from Nonaffiliated Corporation for $6 per share.
-Based on the preceding information,what will be the journal entry to be recorded on Play Company's books to recognize the change in the book value of the shares it holds?

Play Company Acquired 70 Percent of Screen Corporation's Shares on December