On January 1, 2012, Packaging International purchased 90% of Shipaway Corporation's outstanding shares for $135,000 when...
On January 1, 2012, Packaging International purchased 90% of Shipaway Corporation's outstanding shares for $135,000 when the fair value of Shipaway's identifiable net assets were equal to the book values. The balance sheets of Packaging and Shipaway Corporations at year-end 2011 are summarized as follows: Packaging Shipaway Assets $590,000 $180,000 Liabilities $70,000 $30,000 Capital stock 360,000 90,000 Retained earnings 160,000 50,000 If a consolidated balance sheet was prepared immediately after the business combination, the Noncontrolling (minority) interest would be
Homework Answers
Noncontrolling (minority) interest would be:
Ans: $ 15,000
Explanation:
1) $ 135,000 ÷ 90%
= $150,000
2) Minority Percentage:
= 100 -90
= 10%
3) Minority Interest:
= $ 150,000 × 10%
= $ 15,000
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