On December 31, 2020, Oriole Company purchased a controlling interest in Kingbird Company for $1,240,000. The...

 

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On December 31, 2020, Oriole Company purchased a controlling interest in Kingbird Company for $1,240,000. The consolidated balance sheet on December 31, 2020 reported noncontrolling interest in Kingbird Company of $310,000. On the date of acquisition, the stockholders' equity section of Kingbird Company's balance sheet was as follows: Common stock Other contributed capital Retained earnings Total (a) $565,000 415,000 370,000 Noncontrolling interest $1,350,000 Compute the noncontrolling interest percentage on December 31, 2020. % Prepare the investment elimination entry made to prepare a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary land. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) On December 31, 2020, Oriole Company purchased a controlling interest in Kingbird Company for $1,240,000. The consolidated balance sheet on December 31, 2020 reported noncontrolling interest in Kingbird Company of $310,000. On the date of acquisition, the stockholders' equity section of Kingbird Company's balance sheet was as follows: Common stock Other contributed capital Retained earnings Total (a) $565,000 415,000 370,000 Noncontrolling interest $1,350,000 Compute the noncontrolling interest percentage on December 31, 2020. % Prepare the investment elimination entry made to prepare a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary land. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)

Answer rating: 100% (QA)

To compute the noncontrolling interest percentage on December 31 2020 we need to divide the noncontr... View the full answer