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.

---

Definitions:

Pediatrician

A medical doctor specializing in the health and medical care of infants, children, and adolescents.

Naturally Occurring Hormone

A hormone that is produced and found naturally within an organism, without artificial enhancement or modification.

Non-prescription Medication

Non-prescription Medication refers to drugs and treatments that can be purchased without a doctor's prescription, often used for minor ailments or conditions.

Melatonin

A hormone produced by the pineal gland in the brain, involved in regulating the sleep-wake cycle.