Python acquires 80% of the voting stock of Slither on January 1, 2017

QUESTION

.9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>Python acquires 80% of the voting stock of Slither on January 1, 2017 for $1,500,000. The fair value of the noncontrolling interest is $350,000. Slither’s balance sheet at the date of acquisition is as follows:Book ValueDr (Cr)Fair ValueDr (Cr)Tangible assets$5,000,000$3,500,000Identifiable intangibles–2,000,000Liabilities(3,000,000)(3,000,000)Capital stock(500,000)–Retained earnings(1,400,000)–Accumulated other comprehensive income(100,000)On the consolidation working paper at January 1, 2017, what is the credit to noncontrolling interest in equity for eliminating entry (E)?(Points : 4)$400,000$100,000$300,000$-0-.9px;=”” currentcolor;=”” 0px=”” 12px=”” sans-serif;=”” sans”,=”” “open=”” 24px=”” 14px=””>Python acquires 80% of the voting stock of Slither on January 1, 2017 for $1,500,000. The fair value of the noncontrolling interest is $350,000. Slither’s balance sheet at the date of acquisition is as follows:Book ValueDr (Cr)Fair ValueDr (Cr)Tangible assets$5,000,000$3,500,000Identifiable intangibles–2,000,000Liabilities(3,000,000)(3,000,000)Capital stock(500,000)–Retained earnings(1,400,000)–Accumulated other comprehensive income(100,000)On the consolidation working paper at January 1, 2017, what is the credit to Investment in Slither for eliminating entry (R)?(Points : 4)$700,000$400,000$550,000$-0-

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