On January 1, 2014, Woody Company acquires 80% of the outstanding common stock of Buzz, for a purchase price of $785,000.It was determined that the fair market value of the noncontrolling interest in the subsidiary is $190,000.The book value of the Buzz's stockholders' equity on the date of acquisition is $500,000 and its fair market value of identifiable tangible and intangible assets is $900,000.The excess fair market value over book value is allocated $200,000 to equipment with a remaining useful life of 10 years, and $200,000 to a patent with a remaining useful life of 8 years.

Topic: Acquisition Accounting Premium

LO: 1

20. The journal entry (on Woody's books) to recognize the acquisition date AAP assets and allocate the ownership interest in those assets to the parent and noncontrolling interests (entry A) includes:

a. Equity investment, credit, $400,000

b. Noncontrolling interest, credit, $100,000

c. Buzz retained earnings, debit, $332,500

d. Noncontrolling interest, credit, $90,000

The answer is d but please show work how to get it