BeBook Print Question 11 Not complete Marked out of 1 P Flag question On January 1, 2018, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for $91,700,000 in cash. The fair value of the noncontrolling interest in Starfruit at the date of acquisition was $6,300,000. Starfruit's book value was $13,000,000 at the date of acquisition. Starfruit's assets and liabilities were reported on its books at values approximating fair value, except ts plant and equipment (10-year life, straight-line) was overvalued by $25,000,000. Starfruit Company had previously unreported intangible assets, with a market value of $40,000,000 and 5-year ife, straight-line, which were capitalized following GAAP. Now assume Pomegranate paid only $20,000,000 to acquire 90% of Starfruit. The fair value of the noncontrolling interest at the date of acquisition was $2,000,000, at the date of acquisition, consolidation eliminating entry (R) credits the noncontrolling interest in Starfruit in the amount of $6,700,000 $4,900,000 $2,000,000 $ 700,000 Check Previous Save Answers Finish attempt... BeBook Print Question 11 Not complete Marked out of 1 P Flag question On January 1, 2018, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for $91,700,000 in cash. The fair value of the noncontrolling interest in Starfruit at the date of acquisition was $6,300,000. Starfruit's book value was $13,000,000 at the date of acquisition. Starfruit's assets and liabilities were reported on its books at values approximating fair value, except ts plant and equipment (10-year life, straight-line) was overvalued by $25,000,000. Starfruit Company had previously unreported intangible assets, with a market value of $40,000,000 and 5-year ife, straight-line, which were capitalized following GAAP. Now assume Pomegranate paid only $20,000,000 to acquire 90% of Starfruit. The fair value of the noncontrolling interest at the date of acquisition was $2,000,000, at the date of acquisition, consolidation eliminating entry (R) credits the noncontrolling interest in Starfruit in the amount of $6,700,000 $4,900,000 $2,000,000 $ 700,000 Check Previous Save Answers Finish attempt