ABC Parent Company acquired 65% of XYZ Subsidiary Co, for $905,000, on January 1, 2018. The book...
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ABC Parent Company acquired 65% of XYZ Subsidiary Co, for $905,000, on January 1, 2018. The book value of XYZ Subsidiary Company's net assets, on this date, is $1,000,000. At the time of the acquisition, the fair value of depreciable assets exceeded the book value by $200,000. The net assets of ABC Parent Company on the acquisition date was $6,000,000. How much is reported on the consolidated financial statement as the non-controlling interest? |
Homework Answers
Non controlling interest is minority interest which is 100%-65% = 35 percent
65% capital is 905000$
Applying unitary method 100% capital would be
905000/65% x 100% = 13292308$
so non controlling interest would be 35% of 12392308 = 487307.7
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