On January 1, 2018, Riney Co. owned 80% of the common stock of Garvin Co. On...

On January 1, 2018, Riney Co. owned 80% of the common stock of Garvin Co. On that date, Garvin's stockholders' equity accounts had the following balances:


Common stock ($5 par value)	$	250,000
Additional paid-in capital		110,000
Retained earnings		330,000
Total stockholders’ equity	$	690,000

The balance in Riney's Investment in Garvin Co. account was $552,000, and the noncontrolling interest was $138,000. On January 1, 2018, Garvin Co. sold 10,000 shares of previously unissued common stock for $15 per share. Riney did not acquire any of these shares.

What amount should be attributed to the Noncontrolling Interest in Garvin Co. following the sale of the 10,000 shares of common stock?

Multiple Choice

$288,000.
$101,000.
$280,000.
$230,000.
$168,000.

Expert Solution

ekkarill92 answered 2 years ago

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