Required informationOn January 1, 20X2, Power Company acquired 80 percent of Strong Company's outstanding stock for cash. The fair valueof the noncontrolling interest was equal to a proportionate share of the book value of Strong Company's net assets at thedate of acquisition. Selected balance sheet data at December 31, 20X2 are as follows:Total AssetsLiabilitiesCommon StockRetained EarningsTotal Liabilities & Stockholders' EquityMultiple ChoiceO$35,200Based on the preceding information, what amount should be reported as noncontrolling interest in net assets in Power Company's December 31, 20X2, consolidated balance sheet?$48,200$76,800Power$ 564,000O $112,800180,000150,000234,000$ 564,000Strong$ 216,00065,00080,00096,000$ 241,000

NCI appears in consolidated financial statements when a subsidiary's financial results and assets…

of the noncontrolling interest was equal to a proportionate share of the book value of Strong Company's date of acquisition. Selected balance sheet data at December 31, 20X2 are as follows: Total Assets Liabilities Power $ 564,000 180,000 Strong $ 216,000 65,000

of the noncontrolling interest was equal to a proportionate share of the book value of Strong Company's date of acquisition. Selected balance sheet data at December 31, 20X2 are as follows: Total Assets Liabilities Power $ 564,000 180,000 Strong $ 216,000 65,000

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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Question

Required information
On January 1, 20X2, Power Company acquired 80 percent of Strong Company's outstanding stock for cash. The fair value
of the noncontrolling interest was equal to a proportionate share of the book value of Strong Company's net assets at the
date of acquisition. Selected balance sheet data at December 31, 20X2 are as follows:
Total Assets
Liabilities
Common Stock
Retained Earnings
Total Liabilities & Stockholders' Equity
Multiple Choice
O
$35,200
Based on the preceding information, what amount should be reported as noncontrolling interest in net assets in Power Company's December 31, 20X2, consolidated balance sheet?
$48,200
$76,800
Power
$ 564,000
O $112,800
180,000
150,000
234,000
$ 564,000
Strong
$ 216,000
65,000
80,000
96,000
$ 241,000

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