Question

On January 1, 2012, Packaging International purchased 90% of Shipaway Corporation's outstanding shares for $135,000 when the fair value of Shipaway's net assets were equal to the book values. The balance sheets of Packaging and Shipaway Corporations at year-end 2011 are summarized as follows:

Packaging Shipaway

Assets $590,000 $180,000

Liabilities $70,000 $30,000

Capital stock 360,000 90,000

Retained earnings 160,000 60,000

If a consolidated balance sheet was prepared immediately after the business combination, the noncontrolling interest would be

A) $9,000.

B) $13,500.

C) $15,000.

D) $16,667.

Answer

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