Question #52

Reading: Reading 8 Intercorporate Investments

PDF File: Reading 8 Intercorporate Investments.pdf

Page: 23

Status: Unattempted

Part of Context Group: Q52-54 First in Group
Shared Context
- After the acquisitions, the liabilities reported by Company X will be: A) $300,000. B) $480,000. C) $460,000.
Question
After the acquisitions, minority interest reported by Company X will be:
Answer Choices:
A. $168,000
B. $0
C. $72,000
Explanation
Minority interest will be equal to the proportion not owned of Company D multiplied by the equity of Company D, which is (1 − 0.7) × 240,000 = 72,000.
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