QUESTIONOn December 31, 2020, P Company purchased a controlling interest in S. Company for $1.060,000. The consolidatedbalance sheet on December 31, 2020 reported noncontrolling interest in S Company of $265,000.On the date of acquisition, the stockholders' equity section of S Company's balance sheet was as follows:Common stockOther contributed capitalRetained earningsTotalNoncontrolling Interest Percentage is:$520,000$380,000Required:1. Compute the noncontrolling interest percentage on December 31, 2020.Otsek S$280,000$1,180,0002. Prepare the investment elimination entry made to prepare a consolidated balance sheet workpaper. Any differencebetween book value and the value implied by the purchase price relates to subsidiary PP&E.DebitCredit7 points

Investment in Splish company by price = $1,060,000Investment in Splish company - NCI =…

1. Compute the noncontrolling interest percentage on December 31, 2020. Noncontrolling Interest Percentage is: 2. Prepare the investment elimination entry made to prepare a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary PP&E. Credit

1. Compute the noncontrolling interest percentage on December 31, 2020. Noncontrolling Interest Percentage is: 2. Prepare the investment elimination entry made to prepare a consolidated balance sheet workpaper. Any difference between book value and the value implied by the purchase price relates to subsidiary PP&E. Credit

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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