Panther Corporation currently holds an 85 percent interest in Solano Systems, an

Question

Panther Corporation currently holds an 85 percent interest in Solano Systems, and reports the noncontrolling interest in Solano at $3,500,000 on its balance sheet. Panther acquires the remaining 15 percent interest in Solano, paying the following consideration: Cash of $4,500,000, 100,000 new shares of Panther, having a par value of $0.50 per share and a fair value of $18/share, and notes payable of $400,000.

Required

Prepare Panther’s journal entry to record acquisition of the noncontrolling interest in Solano.

Enter numerical answers in thousands (ex: $4,500,000 equals $4,500 in thousands; $400,000 equals $400 in thousands).

Description Debit Credit Answer Cash Goodwil lInvestment in Solano Systems Noncontrolling interest Answer Answer Contributed capital/APIC Answer Answer Answer Cash Goodwil lInvestment in Solano Systems Noncontrolling interest Answer Answer Common stock Answer Answer Contributed capital/APIC Answer Answer Notes payable Answer Answer

Explanation / Answer

Journal entries . (In'000)

Investment in Salona system (Non controlling int.). Dr. 3500

Goodwill. Dr. 2200

To common stock . 50

To securities premium. 1750

To cash. 4500   

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