On January 3,20X9,Pleat Company Acquired 80 Percent of Stitch Corporation's

question 3

Multiple Choice

On January 3,20X9,Pleat Company acquired 80 percent of Stitch Corporation's common stock for $344,000 in cash.At the acquisition date,the book values and fair values of Stitch's assets and liabilities were equal,and the fair value of the noncontrolling interest was equal to 20 percent of the total book value of Stitch.The stockholders' equity accounts of the two companies at the acquisition date are:
Noncontrolling interest was assigned income of $11,000 in Pleat's consolidated income statement for 20X9.
-Based on the preceding information,what amount will be assigned to the noncontrolling interest on January 3,20X9,in the consolidated balance sheet?

• A)$86,000
• B)$44,000
• C)$68,800
• D)$50,000

---

Definitions:

Monoglycerides

Fatty acids bonded to a glycerol molecule; a type of lipid used as an emulsifier in various food products.

Disaccharides

Carbohydrates composed of two monosaccharide molecules bonded together, such as sucrose and lactose.

Stomach Ulcers

Sores that develop on the lining of the stomach, upper small intestine, or esophagus, often resulting from Helicobacter pylori infection or the use of NSAIDs.

Helicobacter Pylori

A type of bacteria that infects the stomach lining and is associated with ulcers and some forms of stomach cancer.