Consolidation with Minority Interest
Temple Corporation acquired 75 percent of Dynamic Corporation’s voting common stock on December 31, 20X4, for $390,000. At the date of combination, Dynamic reported the following:
Current Assets | $220,000 | Current Liabilities | $ 80,000 |
Long-Term Assets (net) | 420,000 | Long-Term Liabilities | 200,000 |
|
| Common Stock | 120,000 |
|
| Retained Earnings | 240,000 |
Total | $640,000 | Total | $640,000 |
At December 31, 20X4, the book values of Dynamic’s net assets and liabilities approximated their fair values, except for buildings, which had a fair value of $80,000 more than book value, and inventories, which had a fair value of $36,000 more than book value. The fair value of the noncontrolling interest was determined to be $130,000 at that date.
Required
Temple Corporation wishes to prepare a consolidated balance sheet immediately following the business combination. Give the eliminating entry or entries needed to prepare a consolidated balance sheet at December 31, 20X4.
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