C. Non controlling interest is...?

5. Anar Question 10 5 points On January 1, 2017, P purchased 80% of the capital stock of S for $80,000. S had common stock of $80,000 and retained earnings of $16,000 at that time. On December 31, 2021, the trial balances of the two companies were: S Cash 13,000 14,000 Accounts receivable 36,000 37,000 96,000 0 Investment in S Company Plant and equipment 60,000 45,000 Land 18,000 12,000 Dividends declared 10,000 12,000 15,000 Inventory, 12/31 Cost of Sales and Expenses Total debits 60,800 50,000 30,000 331,800 164,000 Liabilities 20,000 6,000 Common stock 120,000 80,000 Retained earnings 57,400 30,000 48,000 Sales 120,000 Equity in subsidiary income 14,400 0 US TU",VVU Liabilities 20,000 6,000 Common stock 120,000 80,000 Retained earnings 57 400 30,000 Sales 120,000 48,000 Equity in subsidiary income 14,400 0 Total credits 331,800 164,000 Any difference between book value and the value implied by the purchase price relates to Land. You are required to: (a) Prepare the working paper entry on December 31, 2021, to eliminate the Equity in subsidiary income and intercompany dividends. Answer Debit Credit Equity in subsidiary 11 income Dividends declared - S Investment account (b) Prepare the working paper elimination entries on December 31, 2021, to eliminate the investment account. Answer: Debit Credit Common stock Retained earnings Difference - implied and book values Noncontrolling interest