Frey LtdAcquired 70% of Sabo Ltd

question 4

Multiple Choice

Frey Ltd.acquired 70% of Sabo Ltd.several years ago.On January 1,20X8,Frey reduced its holding in Sabo by 10%.The shares were sold for $160,000.At December 31,20X7,under the entity method,the balance of Frey's share of Sabo's net assets was $84,000.What adjustment should be made to the consolidated shareholders' equity to reflect Frey's reduction in interest in Sabo to 60%?

• A)$76,000
• B)$84,000
• C)$148,000
• D)$160,000

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