With respect to the valuation of non-controlling interest, what are the major differences among proprietary, parent company, and entity theories?
Answer to relevant QuestionsHow does the presentation of non-controlling interest on the consolidated balance sheet differ under the four theories of consolidating a non-wholly owned subsidiary? On December 31, Year 7, Maple Company issued preferred shares with a fair value of $600,000 to acquire 12,000 (60%) of the common shares of Leafs Limited. The Leafs shares were trading in the market at around $40 per share ...The balance sheets of Prima Ltd. and Donna Corp. on December 31, Year 5, are shown below: The fair values of the identifiable net assets of Donna Corp. on this date are as follows: Cash ........... $ 6,400 Accounts ...The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: On December 31, Year 6, E Ltd. issued 350 shares, with a fair value of $40 each, for 70% of the outstanding shares of J Ltd. Costs involved in ...Why does adding the parent's share of the increase in retained earnings of the subsidiary and the parent's retained earnings under the cost method result in consolidated retained earnings? Assume that there is no acquisition ...
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