On January 2, 20X2, Piranha Company acquired 70 percent of Salmon Corporation's common stock for $420,000 cash. At the acquisition date, the book values and fair values of Salmon' assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 30 percent of the total book value of Salmon. The stockholders' equity accounts of the two companies at the acquisition date are as follows:
Piranh Salmon
Common Stock ($10 par value) $600,000 $350,000
Additional Paid-In Capital 450,000 50,000
Retained Earnings 250,000 200,000
Total Stockholders’ Equity $1,300,000 $600,000
Noncontrolling interest was assigned income of $15,000 in Piranh consolidated income statement for 20X2.
Based on the preceding information, what amount will be assigned to noncontrolling interest on January 2, 20X2, in the consolidated balance sheet?

Respuesta :

Answer:

Non Controlling interest (NCI) = 180000

Explanation:

Fair value of assets = Book Values

Total Equity of Salmon on 2 January 2002 = 600000

Share of Net assets NCI 30% = 600000*30% = 180000

There is no change at acquisition so 30% will be applied on book value which is equal to Fair Value.

15,000 income relates to the post acquisition share of profit of NCI.

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