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hat amount will be reported as non-controlling interest?

hat amount will be reported as non-controlling interest?

FINANCIAL ACCOUNTING
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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What amount will be reported as non-controlling interest?

Power Corporation acquired 70 percent of Silk Corporation's common stock on December 31, 20x2. Balance sheet data for the two companies immediately following acquisition follow: Item Power Silk 30,000 45,000 Cash P 44,000 110,000 P Accounts Receivable Inventory 130,000 80,000 500,000 (223,000) 150,500 791,500 70,000 25,000 400,000 Land Buildings and equipment Less: Accumulated depreciation Investment in Silk Corporation stock (165,000) Total Assets P 405,000 61,500 Accounts payable Taxes payable Bonds payable 28,000 37,000 200,000 95,000 280,000 150,000 205,000 791,500 Common stock Retained earnings Total Liabilities and Stockholders' Equity P 50,000 90,000 405,000 After the date of the business combination, the book value of Silk's net assets and liabilities approximated their fair value except for inventory, which had a fair value of P85,000, and land, which had a fair value of P45, 000. The fair value of the non-controlling interest was P64,500 on December 31, 20x2. For each of the question below, indicate the appropriate total that should appear in the consolidated balance sheet immediately after the business combination on the basis of full-goodwill approach:
Transcribed Image Text:Power Corporation acquired 70 percent of Silk Corporation's common stock on December 31, 20x2. Balance sheet data for the two companies immediately following acquisition follow: Item Power Silk 30,000 45,000 Cash P 44,000 110,000 P Accounts Receivable Inventory 130,000 80,000 500,000 (223,000) 150,500 791,500 70,000 25,000 400,000 Land Buildings and equipment Less: Accumulated depreciation Investment in Silk Corporation stock (165,000) Total Assets P 405,000 61,500 Accounts payable Taxes payable Bonds payable 28,000 37,000 200,000 95,000 280,000 150,000 205,000 791,500 Common stock Retained earnings Total Liabilities and Stockholders' Equity P 50,000 90,000 405,000 After the date of the business combination, the book value of Silk's net assets and liabilities approximated their fair value except for inventory, which had a fair value of P85,000, and land, which had a fair value of P45, 000. The fair value of the non-controlling interest was P64,500 on December 31, 20x2. For each of the question below, indicate the appropriate total that should appear in the consolidated balance sheet immediately after the business combination on the basis of full-goodwill approach:
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