On January 1,20X6,Power Company Acquired 80 Percent of Strong Company's

question 15

Multiple Choice

On January 1,20X6,Power Company acquired 80 percent of Strong Company's outstanding stock for cash.The fair value of the noncontrolling interest was equal to a proportionate share of the book value of Strong Company's net assets at the date of acquisition.Selected balance sheet data at December 31,20X6 are as follows:

-Based on the preceding information,what amount should be reported as noncontrolling interest in net assets in Power Company's December 31,20X6,consolidated balance sheet?

• A)$35,200
• B)$48,200
• C)$76,800
• D)$112,800

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Definitions:

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Common Size Statement

Financial statements that present all line items as a percentage of a common base figure, facilitating comparison across different periods or companies.

Liquidity Ratios

Financial metrics that measure a company's ability to pay off its short-term obligations with its liquid assets.

Return on Assets

Return on Assets (ROA) is a profitability ratio that measures the efficiency of a company in generating profit from its assets.