In 2006, A acquired a 100% equity interest in B for cash consideration of $125,000. B’s identifiable net assets at fair value were $100,000. Goodwill of $5,000 was identified and recognized. In the subsequent years, B increased net assets by $20,000 to $120,000. This is reflected in equity attributable to the parent. A then disposed of 30% of its equity interest to non- controlling interests for $40,000. Required: Calculate the increase or decrease to be recorded in equity

SWFT Corp Partner Estates Trusts
42nd Edition
ISBN:9780357161548
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Chapter13: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 51P
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In 2006, A acquired a 100% equity interest in B for cash
consideration of $125,000. B’s identifiable net assets at fair value
were $100,000. Goodwill of $5,000 was identified and recognized.
In the subsequent years, B increased net assets by $20,000 to
$120,000. This is reflected in equity attributable to the parent.
A then disposed of 30% of its equity interest to non- controlling
interests for $40,000.
Required:
Calculate the increase or decrease to be recorded in equity.

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