Question
On January 1, 2021, 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, 2021, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp. for $364,000. There is no active market for Strongs 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, 2021, before preparing the consolidated worksheet, the financial statements appeared as follows:
Pride, Inc. | Strong Corp. | ||||||
Revenues | $ | 420,000 | $ | 280,000 | |||
Cost of goods sold | (196,000 | ) | (112,000 | ) | |||
Operating expenses | (28,000 | ) | (14,000 | ) | |||
Net income | $ | 196,000 | $ | 154,000 | |||
Retained earnings, 1/1/21 | $ | 420,000 | $ | 210,000 | |||
Net income (above) | 196,000 | 154,000 | |||||
Dividends paid | 0 | 0 | |||||
Retained earnings, 12/31/21 | $ | 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 | $ | 588,000 | $ | 196,000 | |||
Common stock | 280,000 | 140,000 | |||||
Retained earnings, 12/31/21 (above) | 616,000 | 364,000 | |||||
Total liabilities and stockholders equity | $ | 1,484,000 | $ | 700,000 | |||
During 2021, 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, 2021, 60% of these goods remained in the company's possession.
What is the consolidated total of noncontrolling interest at December 31, 2021?
Multiple Choice
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$97,440.
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$93,800.
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$120,400.
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$117,040.
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