Grayson Ltd

question 34

Multiple Choice

Grayson Ltd. acquired 60% of the outstanding common shares of Goldberg Ltd. for $480,000. At the date of acquisition, Goldberg's shareholders' equity was $625,000. The goodwill at 100% has been determined to be $90,000 under the entity method.
-What is the amount of the non-controlling interest that should be reported under the entity method?

• A)$192,000
• B)$250,000
• C)$304,000
• D)$320,000

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Definitions:

Debtor

An individual or organization that owes money to another entity, typically as a result of a loan or credit.

Collateral

Property or assets that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid.

Proceeds

Money or other benefits received from a sale, insurance policy, or other transactions.

Bayer CropScience

A division of Bayer AG, specializing in the research, development, and marketing of agricultural products, including seeds and pest management solutions.