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How did he get this retained earnings number ? And non controlling interest number . 2. Worksheet Example Assume that King Co. acquires 80% of

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image text in transcribed How did he get this retained earnings number ? And non controlling interest number .
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2. Worksheet Example Assume that King Co. acquires 80% of Pawn Co's 100,000 outstanding voting shares on January 1, 2014, for S9.75 per share or a total of s780,000 cash. The shares are trading at an average of S9.75 per share before and after the acquisition >The total fair value of Pawn to be used initially in consolidation is: Consideration transferred by King S780,000 Noncontrolling interest fair value . . . . . 1 95,000 Pawn's total fair value on Jan. 1, 2012... $975,000 The following information is given 63.000 b,000 PAWN COMPANY Book Value Fair Value Difference Current assets Trademarks (indefinite life). Patented technology (20-year life Equipment (10-year life) $440,000 $440,000 480,000 600,000 110,000 100,000 260,000 320,000 60,000 120,000 (10,000) 40,000 5740,000 $950,000$210,000 Long-term liabilities (8 years to maturity).. (550,000)(510,000 Net assets Common stock Retained earnings, 1/1/12 (510,000) Note: Parentheses indicate a credit balance

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