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
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
Chapter13: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 51P
Related questions
Question
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.
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT