Pop Corporation paid $3,000,000 for an 80 percent interest in Son Corporation on January 1, 2016, when

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Pop Corporation paid $3,000,000 for an 80 percent interest in Son Corporation on January 1, 2016, when the book values and fair values of Son's assets and liabilities were as follows (in thousands):
Pop Corporation paid $3,000,000 for an 80 percent interest in

REQUIRED
1. Prepare a journal entry on Son's books to push down 80 percent of the values reflected in the purchase price (the parent-company-theory approach).
2. Prepare a journal entry on Son's books to push down 100 percent of the values reflected in the purchase price (the entity-theory approach).
3. Calculate the noncontrolling interest in Son on January 1, 2016, under parent-company theory.
4. Calculate the noncontrolling interest in Son on January 1, 2016, under entity theory.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Advanced Accounting

ISBN: 978-0134472140

13th edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

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