On January 3, 2009, Jane Company acquired 75 percent of Miller Company’s outstanding common stock for cash. The fair value of the noncontrolling interest was equal to a proportionate share of the book value of Miller Company’s net assets at the date of acquisition. Selected balance sheet data at December 31, 2009, are as follows:
| Jane | Miller | |
| Total Assets | 504000 | 216000 |
| Liabelity | 144000 | 72000 |
| Common Stock | 120000 | 60000 |
| Retained Earning | 240000 | 840000 |
| 504000 | 216000 |
Based on the preceding information, what amount should be reported as noncontrolling interest in net assets in Jane Company’s December 31, 2009, consolidated balance sheet?
- A.$90,000
B. $54,000
C. $36,000
D. $0
- Based on the preceding information, what amount should be reported as noncontrolling interest in net assets in Jane Company’s December 31, 2009, consolidated balance sheet?
Answer:
no controlling interest in net assets in Jane Company’s December 31, 2009 =360000
Working notes for the above answer is as under
| Total Assets(25%) 216000*25% |
54000 |
| Less: | |
| Liability (25%) 72000*25% |
18000 |
| Non controlling interest | 36000 |
- Based on the preceding information, what amount will Jane Company report as common stock outstanding in its consolidated balance sheet at December 31, 2009?
Answer
Jane Company report as common stock outstanding in its consolidated balance=$ 120,000
Explanation :
Here it was given in the sum that, Jane Company acquired 75 percent of Miller Company’s outstanding common stock for cash. so no addition of the share in th jane company so Jane Company report as common stock outstanding in its consolidated balance=$ 120,000
