Question
A parent owns 60% of a subsidiary. The carrying amount of the non-controlling interests (NCI) of 40% is $200 million. There are no amounts accumulated
A parent owns 60% of a subsidiary. The carrying amount of the non-controlling interests (NCI) of 40% is $200 million. There are no amounts accumulated in other comprehensive income for this subsidiary. The parent acquires an additional 15% from NCI for $150 million in cash.
Which of the following journal entry would be recorded in connection with this transaction?
a. Dr. NCI. $75 million
Dr. APIC $75 million
Cr. Cash. $150 million
b. Dr. APIC. $150 million
Cr. Cash. $150 million
c. Dr. NCI. $200,000
Cr. Cash. $150,000
Cr. APIC. $50,000
d. Dr. NCI. $75,000
Dr. Retained Earnings. $75,000
Cr. Cash. $150,000
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Petroleum Accounting Principles Procedures And Issues
Authors: Dennis Jennings, Joe Feiten, Horace Brock
5th Edition
0940966255, 978-0940966253
