ABC Invested $30 Million in Cash in DEF Inc, Which $$): the Fair Value of DEF's Non-Controlling Interest Is

question 16

Essay

ABC invested $30 million in cash in DEF Inc, which was determined to be a VIE whose primary beneficiary is ABC Inc. The balance sheet of DEF on the acquisition date January 1, 2013 is shown below (all figures in millions $$): The fair value of DEF's non-controlling interest is $55. Required: Prepare the journal entry required for consolidation purposes on the date of acquisition assuming current Canadian GAAP.

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Definitions:

Effectiveness

The degree to which something is successful in producing a desired result or outcome; in a second definition, the capability of producing the intended result or achievement of objectives.

Persuade

To convince someone to do or believe something through reasoning or argument.

Stereotypes

Widely held but fixed and oversimplified image or idea of a particular type of person or thing.