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Please help need it for today! Part 2. Question 4 Accounting when there is noncontrolling interest. (12 points) On January 1, Year 1, Pop bought
Please help need it for today!
Part 2. Question 4 Accounting when there is noncontrolling interest. (12 points) On January 1, Year 1, Pop bought 90% of the shares of Sop for $200 million. At the time, the fair value of the 10% noncontrolling interest was $20 million. The book value of Sop on the date of acquisition was $170 milion. All assets and liabilities had fair value equal to book value, except Sop owned a patent, with zero book value, and a fair value of $40 million. It has five years of remaining life. During year 1, Sop reported revenues of $50 million and expenses of $35 million. It declared dividends of $10 million. Pop had net income from its own operations (ignoring its interest in Sop) of $100 million. A. Compute the noncontrolling interest in net income for the year. Show your work (4 points) B. Compute the controlling interest in income for the year.(4 points) C. Compute the amount that should be shown on the consolidated balance sheet at year end for the nocrg interest. (4 points)Step by Step Solution
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