Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2010. Demers reported common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life.
Demers earns income and pays dividends as follows: $\begin{array}{lrrr}&2010&2011&2012\
\text { Net income } & \$ 100,000 & \$ 120,000 & \$ 130,000 \
\text { Dividends } & 40,000 & 50,000 & 60,000
\end{array}$ Assume the partial equity method is applied.
-Compute the noncontrolling interest in Demers at December 31, 2011.

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The Answer of Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2010. Demers reported common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life.
Demers earns income and pays dividends as follows: $\begin{array}{lrrr}&2010&2011&2012\
\text { Net income } & \$ 100,000 & \$ 120,000 & \$ 130,000 \
\text { Dividends } & 40,000 & 50,000 & 60,000
\end{array}$ Assume the partial equity method is applied.
-Compute the noncontrolling interest in Demers at December 31, 2011.

Pell Company Acquires 80% of Demers Company for $500,000 on January