On January 1, 20X9. Long Corporation purchased 60 percent of the common stock of Shortway Company and recorded the following entry:

The book values and fair values of the balance sheet items reported by Shortway at January 1 ,

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a. Compute the amount of the purchase differential paid by Long Corporation.

b. Give the dollar amounts assigned to each of the balance sheet accounts when the purchase differential is assigned.

c. What amount will be reported as noncontrolling interest in the consolidated balance sheet?

d. If Long Corporation had purchased its interest in Shortway for \(\$ 287,000\), give the dollar amounts assigned to each of the balance sheet accounts when the purchase differential is assigned.

Transcribed Image Text:

Investment in Shortway Co. Stock Cash 327,000 327,000