Q3- On January 3, 20X9, Redding Company acquired 80 percent of Frazer Corporation's common stock for $344,000 at 80% of book value in cash. At the acquisition date, the book values and fair values of Frazer's net assets was equal. The stockholders' equity accounts of the two companies at the acquisition date are: Common Stock ($1 Par) Additional Paid in Capital Retained Earnings Total Stockholders' Equity Redding $500,000 a- $86,000 b- $44,000 c- $68,800 d- $50,000 300,000 350,000 $1,150,000 Frazer $100,000 80,000 70,000 $250,000 What amount will be assigned to the noncontrolling interest on January 3, 20X9, in the consolidated balance sheet?
Q3- On January 3, 20X9, Redding Company acquired 80 percent of Frazer Corporation's common stock for $344,000 at 80% of book value in cash. At the acquisition date, the book values and fair values of Frazer's net assets was equal. The stockholders' equity accounts of the two companies at the acquisition date are: Common Stock ($1 Par) Additional Paid in Capital Retained Earnings Total Stockholders' Equity Redding $500,000 a- $86,000 b- $44,000 c- $68,800 d- $50,000 300,000 350,000 $1,150,000 Frazer $100,000 80,000 70,000 $250,000 What amount will be assigned to the noncontrolling interest on January 3, 20X9, in the consolidated balance sheet?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Q3- On January 3, 20X9, Redding Company acquired 80 percent of Frazer Corporation's
common stock for $344,000 at 80% of book value in cash. At the acquisition date, the book
values and fair values of Frazer's net assets was equal. The stockholders' equity accounts of
the two companies at the acquisition date are:
Common Stock ($1 Par)
Additional Paid in Capital
Retained Earnings
Total Stockholders' Equity
a- $86,000
b- $44,000
Redding
$500,000
300,000
350,000
$1,150,000
What amount will be assigned to the noncontrolling interest on January 3, 20X9, in the
consolidated balance sheet?
c- $68,800
d- $50,000
Frazer
$100,000
80,000
70,000
$250,000
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