On December 31,2016,Priestly Company purchased a controlling interest in Shelter Company for $1,060,000.The consolidated balance sheet on December 31,2016 reported noncontrolling interest in Shelter Company of $265,000.
On the date of acquisition,the stockholders' equity section of Shelter Company's balance sheet was as follows:
Required:
A.Compute the noncontrolling interest percentage on December 31,2016.
B.Prepare the investment elimination entry made to prepare a consolidated balance sheet workpaper.Any difference between book value and the value implied by the purchase price relates to subsidiary land.

Question

On December 31,2016,Priestly Company purchased a controlling interest in Shelter Company for $1,060,000.The consolidated balance sheet on December 31,2016 reported noncontrolling interest in Shelter Company of $265,000.
On the date of acquisition,the stockholders' equity section of Shelter Company's balance sheet was as follows:
  Required:
A.Compute the noncontrolling interest percentage on December 31,2016.
B.Prepare the investment elimination entry made to prepare a consolidated balance sheet workpaper.Any difference between book value and the value implied by the purchase price relates to subsidiary land.

Quizplus · Accepted Answer

The Answer of On December 31,2016,Priestly Company purchased a controlling interest in Shelter Company for $1,060,000.The consolidated balance sheet on December 31,2016 reported noncontrolling interest in Shelter Company of $265,000.
On the date of acquisition,the stockholders' equity section of Shelter Company's balance sheet was as follows:
  Required:
A.Compute the noncontrolling interest percentage on December 31,2016.
B.Prepare the investment elimination entry made to prepare a consolidated balance sheet workpaper.Any difference between book value and the value implied by the purchase price relates to subsidiary land.

On December 31,2016,Priestly Company Purchased a Controlling Interest in Shelter