• On January 1, 20X8, Ritt Corporation acquired 80% of Shaw Corporation's $10 par common stock for $975,000. On this date, the fair value of the non-controlling interest was $239,000, and the carrying amount of Shaw's net assets was $1,000,000. The fair values of Shaw's identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net) with a remaining life of 20 years, which were $100,000 in excess of the carrying amount. For the year ended December 31, 20X8, Shaw had a net income of $190,000 and paid cash dividends totaling $125,000. In the December 31, 20X8, consolidated balance sheet, the amount of non-controlling interest reported should be:

  a) $239,000

  b) $252,000

  c) $200,000

  d) $251,000

Answer rating: 100% (QA)

B EXPLANATION The calculation for the noncontrolli... View the full answer