6918810 - consolidated balance sheet what amount should be reported as no controlling interest Solution Pujols Inc has exchanged 70 of outstanding

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Question On April 1, Pujols, Inc., exchanges $430,000 fair-value consideration for 70 percent of the outstand- ing stock of Ramirez Corporation. The remaining 30 percent of the outstanding shares continued to trade at a collective fair value of $165,000. Ramirez’ identifiable assets and liabilities each had book values that equaled their fair values on April 1 for a net total of $500,000. During the remainder of the year, Ramirez generates revenues of $600,000 and expenses of $360,000 and paid no dividends. On a December 31
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Unformatted text preview: consolidated balance sheet, what amount should be reported as no controlling interest? Solution Pujols Inc has exchanged 70% of outstanding stock. So remaining 30% share will be reported as non controlling interest. Non Controlling Interest is 30% Fair value of shares-165,000 Net Asset-150,000(30%of 500,000) Revenue-180,000(30% of 600,000) Total-495,000 Less: Expenses-108,000 Net-387,000 387,000 shall be reported as non controlling interest....
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This note was uploaded on 03/26/2011 for the course BUSINESS 420 taught by Professor Fisher during the Spring '11 term at DeVry Chicago.

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