17) In 2011 Ace Inc. acquired a 100% equity interest in Beauty Co. for cash consideration of $125,000. Beauty's identifiable net assets at fair value were $100,000. Goodwill of $5,000 was identified and recognized. In the subsequent years Beauty increased net assets by $20,000 to $120,000. This is reflected in equity attributable to the parent. Ace then dispose of 30% of its equity interest to non-controlling interest for $40,000. What is the increase or decrease to be recorded in equity?

17) In 2011 Ace Inc. acquired a 100% equity interest in Beauty Co. for cash consideration of $125,000. Beauty's identifiable net assets at fair value were $100,000. Goodwill of $5,000 was identified and recognized. In the subsequent years Beauty increased net assets by $20,000 to $120,000. This is reflected in equity attributable to the parent. Ace then dispose of 30% of its equity interest to non-controlling interest for $40,000. What is the increase or decrease to be recorded in equity?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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