On January 1, 20X9, Far Limited Purchased 70% of the Common

question 3

Essay

On January 1, 20X9, Far Limited purchased 70% of the common shares of Near Limited for $54,900,000. On the date of acquisition, Near's shareholders' equity was as follows:
$$\begin{array} { | l | r | } \hline \text { Common shares (1,000,000, no par value) } & \$ 5,000,000 \\\hline \begin{array} { l } \text { Preferred shares (200,000, no par value, } \$ 3 \text { dividend, } \\\text { callable at } \$ 65 ; \text { cumulative and non-voting) }\end{array} & 11,500,000 \\\hline \text { Retained earnings } & \$ 1,600,000 \\\hline \text { Total } & \$ 81,000,000 \\\hline\end{array}$$ The fair value of Near's assets on the date of acquisition equalled their carrying value, except for a trademark worth $500,000 that was not on Near's books. The trademark is estimated to have a useful life of 10 years. During the fiscal year ended December 31, 20X9, Near earned a net income of $1,700,000, and paid dividends of $800,000.
Required:
What is the non-controlling interest on the consolidated statements of financial position at December 31, 20X9?
The company uses the entity approach to calculate goodwill.

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Definitions:

Heroin

An opioid drug made from morphine, a natural substance taken from the seed pod of the various opium poppy plants, known for its addictive properties and illegal status in many countries.

Depressants

A category of drugs that reduce the functioning of the nervous system, often prescribed to relieve anxiety, induce sleep, or manage seizures.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, known for its addictive properties and illegal status in many countries.

Tranquilizers

Medications used to reduce tension or anxiety; also known as anxiolytics.