17) In 2011 Ace Inc. acquired a 100% equity interest in Beauty Co. for cash consideration of $125,000. Beauty's identifiable net assets at fair value were $100,000. Goodwill of $5,000 was identified and recognized. In the subsequent years Beauty increased net assets by $20,000 to $120,000. This is reflected in equity attributable to the parent. Ace then dispose of 30% of its equity interest to non-controlling interest for $40,000. What is the increase or decrease to be recorded in equity?

17) In 2011 Ace Inc. acquired a 100% equity interest in Beauty Co. for cash consideration of $125,000. Beauty's identifiable net assets at fair value were $100,000. Goodwill of $5,000 was identified and recognized. In the subsequent years Beauty increased net assets by $20,000 to $120,000. This is reflected in equity attributable to the parent. Ace then dispose of 30% of its equity interest to non-controlling interest for $40,000. What is the increase or decrease to be recorded in equity?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter7: Corporations: Reorganizations

Section: Chapter Questions

Problem 42P

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