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Dodd Co. acquired 75% of the common stock of Wallace Corp. for $1,800,000. The fair value...

Dodd Co. acquired 75% of the common stock of Wallace Corp. for $1,800,000. The fair value of Wallace’s net assets was $2,100,000, and the book value was $1,900,000. The noncontrolling interest shares of Wallace Corp. are not actively traded. What is the dollar amount of noncontrolling interest that should appear in a consolidated balance sheet prepared at the date of acquisition?

A. 525,000 B. 475,000 C. 600,000 D. 450,000 E. 75,000

Solutions

Expert Solution

Total value of Wallace Corp. 2400000 =1800000/75%
Less: Controlling interest share 1800000
Dollar amount of noncontrolling interest 600000
Option C $600,000 is correct

ekkarill92 answered 2 years ago
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