Response to the following problem:
Corvallis Corporation owns 80% of the stock of Little Harrisburg, Inc. At December 31, 2012, Little Harrisburg had the following summarized balance sheet:
LITTLE HARRISBURG, INC.
Balance Sheet
December 31, 2012
Current assets $100,000 Current liabilities $ 50,000
Long-term debt 150,000
Capital stock 50,000
Property, plant, and equipment (net) 400,000 Retained earnings 250,000
500,000 $500,000
The earnings of Little Harrisburg, Inc., for 2012 were $50,000 after tax.
Required:
a. What would be the amount of noncontrolling interest on the balance sheet of Corvallis Corporation?
b. What would be the noncontrolling interest in share of earnings on the income statement of Corvallis Corporation?