Problem:
Rohan Corporation holds assets with a fair value of $150,000 and a book value of $125,000 and liabilities with a book value and a fair value of $50,000.
Required:
Question: What balance will be assigned to the noncontrolling interest in the consolidated balance sheet if Helms Company pays $90,000 to acquire 75% ownership in Rohan and goodwill of $20,000 is reported?
- $30,000
- $220,000
- $40,000
- $50,000
Note: Please show how to work it out.