Determine the total non-controlling interest

Reference no: EM132840373

Problem - On January 1, 2009, Plate Company purchased 80% of the common stock in Set Company for $700,000, which is $20,000 more than the book value of the equity acquired. These advantages are related to ownership of land of Set Company. Quote from the consolidated retained earnings section of the working paper report consolidated for the year ended December 31, 2009, are as follows:

	Set Company	Consolidated Balances
1/1/09 retained earnings	200,0000	880,000
Net income from above	130,000	420,000
Dividends declared	(50,000)	(88,000)
12/31/09 retained earnings to the balance sheet	280,000	1,212,000

The shareholders of the Set Company consist of common stock and retained earnings only.

Required -

a. Keep an elimination journal for the preparation of the consolidated report working paper for December 31^st 2009, assuming the use of the cost method?

b. Keep an elimination journal for the preparation of the consolidated report working paper for December 31^st 2009, assuming the use of the equity method?

c. Determine the total non-controlling interest that will be reported on the consolidated balance sheet at December 31, 2009. How the difference in non-control interests between the cost method and the equity method?

Reference no: EM132840373

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