2. Cinema Company acquired 75 percent of Movie Corporation's shares on December 31, 2015. at underlying book value of $98,000. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Movie Corporation. Movie's balance sheet on January 1, 2018, contained the following balances: Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Total Assets $50,000 Accounts Payable 35,000 Bonds Payable 40.000 Common Stock 300,000 Additional Paid-In Capital (100.000) Retained Earnings $325,000 Total Liabilities and Equities $10,000 100.000 50,000 73.000 60.000 $325,000 On January 1, 2018, Movie acquired 7,500 of its own $1 par value common shares from Nonaffiliated Corporation for $3 per share. Required: 1. Prepare a statement of ownership position for the activity on January 1, 2018. 2. Based on the preceding information prepare the entry Movie uses to record their transaction. 3. Based on the preceding information, what will be the journal entry required for Cinema Company to recognize the change in the book value of the shares it holds? 2. Cinema Company acquired 75 percent of Movie Corporation's shares on December 31, 2015, at underlying book value of $98,000. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Movie Corporation. Movie's balance sheet on January 1, 2018, contained the following balances: Cash Accounts Reservable Inventory Buildings and Equipment Less: Accumulated Depreciation Total Assets $50,000 Accounts Payable 33.000 Bonds Payable 40.000 Common Stock 300,000 Additional Paid-In Capital (100.000) Retained Earnings $325.000 Total Liabilities and Equities $40.000 100.000 50.000 75.000 60,000 $325,000 On January 1, 2018, Movie acquired 7,500 of its own $1 par value common shares from Nonaffiliated Corporation for $3 per share. Required: 1. Prepare a statement of ownership position for the activity on January 1, 2018. 2. Based on the preceding information prepare the entry Movie uses to record their transaction. 3. Based on the preceding information, what will be the journal entry required for Cinema Company to recognize the change in the book value of the shares it holds