Owl Co. Acquired 70% of the voting common stock of Harbor Corp. on January 1, 20

Question

Owl Co. Acquired 70% of the voting common stock of Harbor Corp. on January 1, 2015. The remaining 30% of the outstanding shares continued ot trade at a collective fair value of $200,000. During 2015, Harbor had revenues of $2,500,000.00 and expenses of $2,000,000.00 and declared no dividends. The amortization of excess cost allocations totaled $60,000.00 in 2015. On the December 31, consolidated balance sheet, what amount should be reported as non-controlling interest? A: $332,000.00 B: $350,000.00 C: $360,000.00 D: $368,000.00 Please show work the answer I keep getting isn't a choice.

Explanation / Answer

Amount to be reported as non controlling interest is $332,000

Note:

In calculation of share of noncontrolling interest balance, proportionate amounts (30%) of total amount of revenues, expenses and cost allocation is considered in calculation.

Option A. is correct and other options are incorrect

Particulars Total Share of NCI Fair value on Jan.1         200,000 Revenues    2,500,000         750,000 Less expenses -2,000,000       -600,000 Less excess cost allocation        -60,000         -18,000 Balance Dec.31       440,000         332,000

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