Explore BrainMass

Value of Minority Interest on Balance Sheet and EPS

Corvallis Corporation owns 80% of the stock of Little Harrisburg, Inc. At December 31, 2008, Little Harrisburg had the following summarized balance sheet:

Balance Sheet
December 31, 2008

Current assets : $100,000
Property, plant, and equipment (net) : $400,000

Current liabilities: $ 50,000
Long-term debt: $ 150,000
Capital stock: $ 50,000
Retained earnings:$ 250.000

The earnings of Little Harrisburg, Inc., for 2008 were $50,000 after tax.

a. What would be the amount of minority interest on the balance sheet of Corvallis Corporation? How should minority interest be classified for financial statement analysis purposes?

b. What would be the minority share of earnings on the income statement of Corvallis Corporation?

Solution Preview

Question A
Minority interest = (500,000 - 50,000 - 150,000)*(100% ...

Solution Summary

This solution assists with determining the value of minority interest on the balance sheet and EPS for Corvallis Corporation.