Witch acquired 70% of the 200,000 equity shares of Wizard, its only subsidiary, on 1 April 20X8 when the retained earnings of Wizard were $450,000. The carrying amounts of Wizard's net assets at the date of acquisition were equal to their fair values apart from a building which had a carrying amount of $600,000 and a fair value of $850,000. The remaining useful life of the building at the acquisition date was 40 years. Witch measures non-controlling interest at fair value, based on share price. The market value of Wizard shares at the date of acquisition was $1.75. At 31 March 20X9 the retained earnings of Wizard were $750,000. At what amount should the noncontrolling interest appear in the consolidated statement of financial position of Witch at 31 March 20X9?
Witch acquired 70% of the 200,000 equity shares of Wizard, its only subsidiary, on 1 April 20X8 when the
acquisition were equal to their fair values apart from a building which had a carrying amount of $600,000 and
a fair value of $850,000. The remaining useful life of the building at the acquisition date was 40 years.
Witch measures non-controlling interest at fair value, based on share price. The market value of Wizard
shares at the date of acquisition was $1.75.
At 31 March 20X9 the retained earnings of Wizard were $750,000. At what amount should the noncontrolling
interest appear in the consolidated
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
