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Need help solving this question. Vera Inc. acquired 60% of Wang Corp for $406,250 on December 31, 2018 when Wang's book value was $445,000. The
Need help solving this question.
Vera Inc. acquired 60% of Wang Corp for $406,250 on December 31, 2018 when Wang's book value was $445,000. The Wang stock was not actively traded. On the date of acquisition, Wang had a building (with a 9-year life) that was undervalued in the financial records by $180,000. One year later the following selected figures were reported by the two companies. Additionally, no dividends have been paid. Vera Inc. Wang Corp Book Value Book Value Fair Value Current assets 1,138,000 395,000 395,000 Equipment (net) 326,000 215,000 215,000 Buildings (net) 496,000 165,000 345,000 Liabilities (488,000) (132,000) (132,000) Revenues (2,235,000) (845,000) Expenses 1,265,000 525,000 Investment income Not given a.) What is the non-controlling interest's share in Wang's net income for the year 2019? [8 points) b.) What is the ending balance of the non-controlling interest in Wang at December 31, 2019? [7 points]Step by Step Solution
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