Pillow Company is purchasing an 80% interest in the common stock of Sleep Company for $800,000. Sleeps

Pillow Company is purchasing an 80% interest in the common stock of Sleep Company for $800,000. Sleep’s balance sheet amounts at book and fair value are as follows:

Use a valuation analysis schedule to determine what will be the amount of the noncontrolling interest in the consolidated balance sheet and how will it be displayed in the consolidated balance sheet.

Transcribed Image Text:

Account Current Assets. . .. Fixed Assets. Liabilities Book Value $200,000 350,000 200,000) Fair Value $250,000 800,000 200,000)