Pillow Company is purchasing an 80% interest in the common stock of Sleep Company for $800,000. Sleep’s balance sheet amounts at book and fair value are as follows: Account Book Value Fair Value Current Assets . . . . . . . . . . . . . . $ 200,000 $ 250,000 Fixed Assets . . . . . . . . . . . . . . . . . 350,000 800,000 Liabilities . . . . . . . . . . . . . . . . . . .. (200,000) (200,000)Use a valuation analysis schedule to determine what will be the amount of the noncontrolling interest in the consolidated balance sheet and how will it be displayed in the consolidated balance sheet.
Pillow Company is purchasing an 80% interest in the common stock of Sleep Company for $800,000. Sleep’s balance sheet amounts at book and fair value are as follows:
Account Book Value Fair Value
Current Assets . . . . . . . . . . . . . . $ 200,000 $ 250,000
Fixed Assets . . . . . . . . . . . . . . . . . 350,000 800,000
Liabilities . . . . . . . . . . . . . . . . . . .. (200,000) (200,000)
Use a valuation analysis schedule to determine what will be the amount of the noncontrolling interest in the consolidated balance sheet and how will it be displayed in the consolidated balance sheet.
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