Based on the preceding information, what is the fair value of the noncontrolling interest at the time of acquisition? $47,813 $57,500 $60,000 $45,000
Question 32
On July 1, 20X8, Pair Logic Corporation acquires 75 percent of Systems Inc. common stock for its underlying book value. At the time of acquisition, the fair value of the noncontrolling interest is equal to its proportionate share of book value of Systems. On January 1, 20X8 Systems reported common stock of $100,000 and
|
|
Before |
After |
|
|
Sales |
$ |
150,000 |
160,000 |
|
Cost of Goods Sold |
|
90,000 |
93,000 |
|
|
|
20,000 |
20,000 |
|
Other Expenses |
|
15,000 |
17,000 |
|
Net Income |
|
25,000 |
30,000 |
|
Dividends |
|
15,000 |
18,000 |
Based on the preceding information, what is the fair value of the noncontrolling interest at the time of acquisition?
|
$47,813 |
||
|
$57,500 |
||
|
$60,000 |
||
|
$45,000 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
