Frey Ltd Acquired 70% of Sabo Ltd

question 6

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 the 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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