The Hoover Corporation acquired 80 percent of the 100,000 outstanding voting shares of Rainbow, Inc., for $6.40 per share on January 1, 2020. The remaining 20 percent of Rainbow’s shares also traded actively at $4.89 per share before and after Hoover’s acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Rainbow’s underlying accounts except that a building with a 5-year future life was undervalued by $62,000 and a fully amortized trademark with an estimated 10-year remaining life had a $67,000 fair value. At the acquisition date, Rainbow reported common stock of $100,000 and a retained earnings balance of $260,000. On January 1, 2021, Rainbow reported retained earnings of $330,000. During year 2021, Rainbow reported net income of $170,000 and declared dividend of $20,000. What is the balance of the noncontrolling interest in the subsidiary on December 31, 2021?
The Hoover Corporation acquired 80 percent of the 100,000 outstanding voting shares of Rainbow, Inc., for $6.40 per share on January 1, 2020.
The remaining 20 percent of Rainbow’s shares also traded actively at $4.89 per share before and after Hoover’s acquisition.
An appraisal made on that date determined that all book values appropriately reflected the fair values of Rainbow’s underlying accounts except that a building with a 5-year future life was undervalued by $62,000 and a fully amortized trademark with an estimated 10-year remaining life had a $67,000 fair value.
At the acquisition date, Rainbow reported common stock of $100,000 and a
On January 1, 2021, Rainbow reported retained earnings of $330,000.
During year 2021, Rainbow reported net income of $170,000 and declared dividend of $20,000.
What is the balance of the noncontrolling interest in the subsidiary on December 31, 2021?
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