Value of Minority Interest on Balance Sheet and EPS
Not what you're looking for?
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?
Purchase this Solution
Solution Summary
This solution assists with determining the value of minority interest on the balance sheet and EPS for Corvallis Corporation.
Solution Preview
Question A
Minority interest = (500,000 - 50,000 - 150,000)*(100% ...
Purchase this Solution
Free BrainMass Quizzes
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.