On January 1, 20X1, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp. for $364,000. On this date, equipment (with a five-year life) was undervalued on Strong's books by $35,000. Any remaining excess was attributable to goodwill. As of December 31, 20X1, the financial statements appeared as follows:

	Pride		Strong
Revenues	$420,000		$280,000
Cost of Goods Sold	196,000		112,000
Operating Expenses	28,000		14,000
Investment Income	100,800
Net Income	$296,800		$154,000
Retained Earnings, 1/1/20X1	$420,000		$210,000
Net Income (From Above)	296,800		154,000
Dividends	0		0
Retained Earnings, 12/31/20X1	$716,800		$364,000
Cash and Receivables	$294,000		$126,000
Inventory	210,000		154,000
Investment in Strong	464,800
Equipment (net)	616,000		420,000
Total Assets	$1,584,800		$700,000
Liabilities	$588,000		$196,000
Common Stock	280,000		140,000
Retained Earnings, 12/31/20X1	716,800		364,000
Total Liabilities and Equity	$1,584,800		$700,000

During 20X1, Pride bought inventory for $112,000 and sold it to Strong for $140,000; 60% of these goods were unsold on December 31, 20X1. Only half of this purchase had been paid for by Strong by the end of the year.

What is the consolidated total of non-controlling interest appearing in the balance sheet on 12/31/20X1?

A.) $100,800.

B.) $97,440.

C.) $93,800.

D.) $120,400.

E.) $117,040.

Answer rating: 100% (QA)

Answer is option D 1064000 Book value Paren... View the full answer