Dodd Co Acquired 75% of the Common Stock of Wallace Corp

question 104

Multiple Choice

Dodd Co. acquired 75% of the common stock of Wallace Corp. for $1,800,000. The fair value of Wallace's net assets was $2,100,000, and the book value was $1,900,000. The noncontrolling interest shares of Wallace Corp. are not actively traded.What is the dollar amount of noncontrolling interest that should appear in a consolidated balance sheet prepared at the date of acquisition?

• A) $75,000.
• B) $450,000.
• C) $475,000.
• D) $525,000.
• E) $600,000.

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