Polaris Incorporated Purchased 80% of the Solar Company on January

question 21

Essay

Polaris Incorporated purchased 80% of The Solar Company on January 2,2014,when Solar's book value was $800,000.Polaris paid $700,000 for their acquisition,and the fair value of noncontrolling interest was $175,000.At the date of acquisition,the fair value and book value of Solar's identifiable assets and liabilities were equal.At the end of the year,the separate companies reported the following balances:
Requirement 1: Calculate consolidated balances for each of the accounts as of December 31,2014.
Requirement 2: Assuming that Solar has paid no dividends during the year,what is the ending balance of the noncontrolling interest in the subsidiary?

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Definitions:

Resource Mobilization

The process of securing and managing resources (financial, human, informational, and other) for the purpose of achieving specific goals and objectives, often used in the context of social movements and nonprofit organizations.

Social Organization

A structured pattern of relationships and roles developed by people to meet social needs within a society.

Solidarity Theory

A sociological perspective emphasizing unity and agreement within a community, especially in the pursuit of common interests or objectives.