Question
On January 1, 2021, Wal-Mart company purchased 90% of Bingo company outstanding shares for $1,400,000 when the fair value of Bingo assets were equal to
On January 1, 2021, Wal-Mart company purchased 90% of Bingo company outstanding shares for $1,400,000 when the fair value of Bingo assets were equal to the book values. The balance sheets of wal-mart and Bingo Corporations at year end 2020 are as follows:
|
| Wal-mart | Bingo |
| Assets | 5,900,000 | 1,450,000 |
| Liabilities | 700,000 | 250,000 |
| Capital stock | 3,600,000 | 1,000,000 |
| Retained earnings | 1,600,000 | 200,000 |
If a consolidated balance sheet was prepared immediately after the business combination, the amount of non-controlling interest would be:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Access Audit Handbook
Authors: Alison Grant
1st Edition
1859461778, 978-1859461778
