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On April 1, Pujols, Inc., exchanges $453,750 for 70 percent of the outstanding stock of Ramirez...

On April 1, Pujols, Inc., exchanges $453,750 for 70 percent of the outstanding stock of Ramirez Corporation. The remaining 30 percent of the outstanding shares continued to trade at a collective fair value of $182,850. Ramirez’s identifiable assets and liabilities each had book values that equaled their fair values on April 1 for a net total of $532,500. During the remainder of the year, Ramirez generates revenues of $704,000 and expenses of $382,000 and declared no dividends. On a December 31 consolidated balance sheet, what amount should be reported as noncontrolling interest?

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Answer #1
Answer:
Ramirez net Income
         =   Revenues (-) Expenses
         =     $ 704,000 (-) $ 382,000
         =     $ 322,000
Given Percent of Non Controlling Interestin Net InCome   = 30%
Share of Non Controlling Interest = $ 322,000 x 30% = $ 96,600
Amount reported as noncontrolling interest
            = Fair Value at Beginning + Share of Income
            =   $ 182,850 + $ 96,600
           =    $ 279,450
Amount reported as noncontrolling interest   =    $ 279,450
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