On January 3,20X9,Pine Company acquired 75 percent of Sap Company's outstanding common stock for cash.The fair value of the noncontrolling interest was equal to a proportionate share of the book value of Sap Company's net assets at the date of acquisition.Selected balance sheet data at December 31,20X9,are as follows:

-Based on the preceding information,what amount should be reported as noncontrolling interest in net assets in Pine Company's December 31,20X9,consolidated balance sheet?
A)$90,000
B)$54,000
C)$36,000
D)$0

Question

On January 3,20X9,Pine Company acquired 75 percent of Sap Company's outstanding common stock for cash.The fair value of the noncontrolling interest was equal to a proportionate share of the book value of Sap Company's net assets at the date of acquisition.Selected balance sheet data at December 31,20X9,are as follows:
 
-Based on the preceding information,what amount should be reported as noncontrolling interest in net assets in Pine Company's December 31,20X9,consolidated balance sheet?
A)$90,000 
B)$54,000 
C)$36,000 
D)$0

Quizplus · Accepted Answer

Noncontrolling interest in net assets is the portion of equity (net assets) in a subsidiary not attributable directly or indirectly to the parent company. The correct amount, based on the information provided, is $36,000. This represents the share of the subsidiary's net assets that belongs to the noncontrolling (minority) interest.

On January 3,20X9,Pine Company Acquired 75 Percent of Sap Company's