In the current year, Company A acquires 70% of the voting stock of Company S for $700,000 in cash. At the date of acquisition by Company A, the fair value of the identifiable net assets of Company S is $1.0 million. The fair value of the 30% NCI is $300,000.

Show the calculations and journal entries to record Company A’s investment in Company S.

Answer rating: 100% (QA)

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