On January 1, 2011, Pride, Inc. acquired 80% of the outstanding voting common st

Question

On January 1, 2011, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp. for $364,000. There is no active market for Strong's stock. Of this payment, $28,000 was allocated to equipment (with a five-year life) that had been undervalued on Strong's books by $35,000. Any remaining excess was attributable to goodwill which has not been impaired.
As of December 31, 2011, before preparing the consolidated worksheet, the financial statements appeared as follows:

During 2011, Pride bought inventory for $112,000 and sold it to Strong for $140,000. Only half of this purchase had been paid for by Strong by the end of the year. 60% of these goods were still in the company's possession on December 31.
What is the consolidated total of non-controlling interest appearing in the balance sheet? Please provide detailed calculation.

A.

$100,800.

B.

$97,440.

C.

$93,800.

D.

$120,400.

E.

$117,040.

Explanation / Answer

The consolidated total of non-controlling interest appearing in the balance sheet is $ 1,20,400.

NCI equity = Beginning NCI equity Fair Value + NCI’s interest in subsidiary income – NCI’s share of dividends

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.