P Incorporated purchased 80% of The S Company on January 2, 2014, when S's book value was $800,000. P paid $700,000 for their acquisition, and the fair value of noncontrolling interest was $175,000. At the date of acquisition, the fair value and book value of S's identifiable assets and liabilities were equal.  

At the end of the year, the separate companies reported the following balances. 

Assuming that S has paid no dividends during the year, what is the ending balance of the noncontrolling interest in the subsidiary?

 

Transcribed Image Text:

Current assets Plant & equipment Investment in Solar Goodwill Current liabilities Long-term debt Stockholder's Equity 5,700,000 15,200,000 780,000 3,600,000 11,680,000 6,400,000 1,250,000 3,400,000 0 0 950,000 2,800,000 900,000 Current assets Plant & equipment Investment in Solar Goodwill Current liabilities Long-term debt Stockholder's Equity 5,700,000 15,200,000 780,000 3,600,000 11,680,000 6,400,000 1,250,000 3,400,000 0 0 950,000 2,800,000 900,000

Answer rating: 100% (QA)

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