Minority Interest

On the last day of the year, Jones Company purchased 90% of the common stock of Smith, Inc., for $5,000,000. At that time, Smith, Inc. reported the following on its balance sheet: assets, $7,400,000; liabilities, $1,300,000; common stock, $10 par, $5,000,000; retained earnings, $1,100,000. In negotiating the stock sale, it was determined that the book carrying amounts of Smiths recorded assets and equities approximated their current market values.

1. At the date of acquisition, the amount to be reported on the consolidated balance sheet for minority interest is:

A. $110,000. C. $610,000. B. $500,000. D. $640,000.

2. At the date of acquisition, the amount to be reported on the consolidated balance sheet for excess of acquisition cost over book value of acquired subsidiary is:

A. $0. C. $670,000. B. $490,000. D. $760,000.

3. Earnings per share is to be reported on the A. income statement:

B. statement of owners equity. C. balance sheet. D. statement of changes in financial position.

Can you please show me how to calculate these problems and find the correct answers.

Thanks, George the student