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Pare Company purchased 75 percent of Kidd Company's stock

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On January 2, 2008, Pare Company purchased 75 percent of Kidd Company's outstanding common stock. Selected balance sheet data at December 31, 20X8, is as follows:

Pare Kidd
Company Company
Total Assets $420,000 $180,000
Liabilities $120,000 $ 60,000
Common Stock 100,000 50,000
Retained Earnings 200,000 70,000
$420,000 $180,000

In Pare's December 31, 20X8, consolidated balance sheet, what amount should be reported as minority interest in net assets?
a. $0.
b. $30,000.
c. $45,000.
d. $105,000.

26. In its consolidated balance sheet at December 31, 20X8, what amount should Pare report as common stock outstanding?
a. $50,000.
b. $100,000.
c. $137,500.
d. $150,000.

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Answer 1: Option c, $45,000
Minority interest is a consolidation concept and not stand alone financial statement concept. Minority interest arise in consolidating financial ...

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  • Chartered Accountant (Equivalent to CPA in US), Institute of Charted Accountants of India
  • Bachelor of Commerce, West Bengal University
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