If less than 100% of a subsidiary's voting stock is obtained, how is the presence of the other owners reflected in consolidated financial statements?

1. As we know, total ownership is not a requirement for consolidation. A parent need only gain control of another company to create a business combination. If less than 100% of a subsidiary's voting stock is obtained, how is the presence of the other owners reflected in consolidated financial statements? What accounting is appropriate for a noncontrolling interest? How are these figures computed and where are they reported on the consolidated statements?

2. Atwater Company acquires 80 percent of the outstanding voting stock of Belwood Company. On that date, Belwood possesses a building with a $160,000 book value but a $220,000 fair value. Assuming that a bargain purchase has not been made, at what value would this building be consolidated under each of the following?
a. Economic unit concept.
b. Proportionate consolidation concept.
c. Parent company concept.

Use the following information for Problem 15 through 19.

On January 1, 2006 Polk Corporation and Strass Corporattion had condensed balance sheets as follows: Polk Strass
Current Assets .............................................. 70,000 20,000
Non currents assets........................................ 90,000 40,000
Total Assets................................................ 160,000 60,00

Current Liabilities........................................ 30,000 10,000
Long term debt............................................. 50,000 -----
Stockholders Equity...................................... 80,000 50,000

Total liabilities and equities.............................. $160,000 $60,000

On January 2, 2006, Polk borrowed 60,000 and used the proceeds to purchases the 90 percent of the out standing common shares of Stream. This debt is payable in 10 equal annual principal payment s. plus interest beginning December 31, 2006.
The excess cost of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent). On a consolidation balance sheet as of January 2, 2006. What should be the amount for each of the following?

15. Current Asssets:
-a- 99,000, b- 96,000, c- 90,000. d- 79,000.

16. Non current assets.
a-130,000, b- 134,000, c- 136,000, d- 140,000.

17. Current liabilities.
a- 50,000, b- 46,000, c-40,000, d-30,000

18. Non current liabilities, including noncontrolling interest.
a-115,000, b- 109,000, c-104,000, d- 55,000

19. Stockholder's equity.
a- 80,000, b- 85,000, c-90,000, d-130,000 (AICPA adapted)