Separating Parent’s Cost into Components On 1/1/06, Prima Inc. acquired 70% of Seconde Inc.’s outstanding common stock at a cost of $203,000. Seconde’s capital account balances at 12/31/05 are as follows:

Common stock . $100,000 Additional paid-in capital . 50,000 Retained earnings . 60,000

$210,000 Each of Seconde’s assets and liabilities has a current value equal to its book value, except for the following items:

Book Value Current Value Land . $170,000 $240,000 Goodwill . 50,000 -0-

10% bonds payable . 160,000 140,000 Required Analyze the Investment account as of the acquisition date. Include the noncontrolling interest.