3 . Vision Corporation acquired 75 percent of the stock of Meta Company on January...
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3 . Vision Corporation acquired 75 percent of the stock of Meta Company on January 1, 2017, for $225,000.At that date, the fair value of the noncontrolling interest was $75,000. Two years later on January 1, 2019 Meta's balance sheet was: Cash Accounts Receivable Inventory Buildings and Equipment (net) Total Assets $40.000 Accounts Payable 40,000 Bonds Payable 20.000 Common Stock 300,000 Retained Earnings $400,000 $50,000 50,000 100.000 200.000 $400,000 On January 1, 2019, Vision sold 700 shares of Meta's $20 par value shares for $50,000 in cash. Vision used the fully adjusted equity method in accounting for its ownership of Meta Company 1. Prepare a statement of ownership position for the activity on January 1, 2019. 2. Compute the balance in the investment account reported by Vision on January 1, 2019 before the sale. 3. Prepare the entry Vision used to record the sale of the shares assuming excess of the sale price over the carrying value is recorded as an increase in Paid in Capital
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