Question

The acquisition value attributable to the non-controlling interest at January 1, 2019 is: A) $23,400. B) $24,000. C) $24,900. D) $26,000. E) $20,000.

Answer 1

D) $26,000

Step-by-step explanation:

The computation of the acquisition value associated with the non-controlling interest is shown below:

= Cash ÷ acquiring percentage × non- owning percentage

= $234,000 ÷ 0.90 × 0.10

= $26,000

It is computed by simply applied the above formula so that the acquisition value in case of non controlling interest could arrive and the same is to be considered