Frey LtdAcquired 70% of Sabo Ltd

question 2

Multiple Choice

Frey Ltd.acquired 70% of Sabo Ltd.in 20X4.On January 1,20X8,Frey acquired another 10% of Sabo's common shares for $250,000.Under the entity method,the balance of the non-controlling interest at December 31,20X7 was $660,000.What adjustment should be made to consolidated shareholders' equity to reflect Frey's additional purchase of shares?

• A)$30,000
• B)$136,667
• C)$220,000
• D)$250,000

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