Question: NONCONTROLLING INTEREST PROBLEM This is a 2 year problem. On January 1, 2023, Jannison Inc. (parent) acquired 90% of Techron Co. (subsidiary) by paying $495,000

NONCONTROLLING INTEREST PROBLEM

This is a 2 year problem. On January 1, 2023, Jannison Inc. (parent) acquired 90% of Techron Co. (subsidiary) by paying $495,000 cash. There is no active trading market for Techron stock. Techron Co. reported a Common Stock account balance of $150,000 and Retained Earnings of $300,000 at that date. The 100% fair value of Techron Co. was appraised at $550,000 and therefore the Noncontrolling Interest beginning balance is $55,000. The total annual amortization was $10,000 as a result of this transaction. The subsidiary earned $100,000 in 2023 and $125,000 in 2024 with dividend payments of $25,000 each year. Without regard for this investment, Jannison had income of $325,000 in 2023 and $375,000 in 2024.

Calculate Net Income for the noncontrolling interest for 2023.

Net Income for Noncontrolling Interest_____________

Calculate Net Income for the noncontrolling interest for 2024.

Net Income for Noncontrolling Interest_____________

What is the noncontrolling interest balance as of December 31, 2024 (end of the second year)?

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