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On January 1, 2018, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp. for $364,000. There is no active market for
On January 1, 2018, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp. for $364,000. There is no active market for Strong's stock. Of this payment, $28,000 was allocated to equipment (with a five-year life) that had been undervalued on Strong's books by $35,000. Any remaining excess was attributable to goodwill, which has not been impaired. As of December 31, 2018, before preparing the consolidated worksheet, the financial statements appeared as follows: Revenues Cost of goods sold Pride, Inc. $420,000 Strong Corp $280,000 (196,000) (112,000) Operating expenses (28,000) (14,000) Net income. $ 196,000 $154.000 Retained earnings, 1/1/18 $ 420,000 $210,000 Net income (above) 196,000 154,000 Dividends paid Retained earnings, 12/31/18 $ 616,000 $364,000 Cash and receivables $ 294,000 $126,000 Inventory 210,000 154,000 Investment in Strong Corp 364,000 0 Equipment (net) 616,000 420.000 Total assets $1,484,000 $700.000 Liabilities Common stock Retained earnings, 12/31/18 (above) Total liabilities and stockholders' equity $ 588,000 $196,000 280,000 140,000 616.000 $1.484.000 364.000 $700,000 During 2018, Pride bought inventory for $112,000 and sold it to Strong for $140,000. Only half of the inventory purchase price had been remitted to Pride by Strong at year-end. As of December 31, 2018, 60% of these goods remained in the company's possession. What is the consolidated total of noncontrolling interest appearing in the balance sheet? Need Help
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