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    Value of Minority Interest on Balance Sheet and EPS

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

    LITTLE HARRISBURG, INC.
    Balance Sheet
    December 31, 2008

    Current assets : $100,000
    Property, plant, and equipment (net) : $400,000
    ---------------
    $500,000

    Current liabilities: $ 50,000
    Long-term debt: $ 150,000
    Capital stock: $ 50,000
    Retained earnings:$ 250.000
    ----------------
    $500,000

    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?

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    https://brainmass.com/business/financial-statements/value-minority-interest-balance-sheet-eps-317192

    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.

    $2.19

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