P Company holds an 80% interest in S Company. Determine the effect (that is, increase, decrease, no change, not determinable) on both the total carrying value of the noncontrolling interest and the noncontrolling interest’s percentage of ownership in the net assets of S Company for each of the following situations:
(a) P Company acquires additional shares directly from S Company at a price where the effective carrying value of the controlling interest is less than the recorded carrying value of the subsidiary.
(b) P Company and the noncontrolling shareholders purchase shares ratably so that the ownership percentages don’t change.