Assume the following facts relating to an 80% owned subsidiary company: BOY Stockholders’ Equity $600,000 BOY...
Assume the following facts relating to an 80% owned subsidiary
company:
|
BOY Stockholders’ Equity |
$600,000 |
|
BOY AAP assets |
50,000 |
|
Net income of subsidiary (not including [A] asset depreciation and amortization) |
125,000 |
|
AAP assets depreciation and amortization expense |
20,000 |
|
Dividends declared and paid to noncontrolling shareholders |
2,500 |
What is the amount reported as noncontrolling equity at the end
of the year?
answer: 148,500. Please show me the work
Homework Answers
ANSWER
The amount reported as noncontrolling equity at the end of the year is:
= [20% × ($600,000+ $50,000+ $125,000- $20,000)] - $2,500
= $148,500
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